AUDIT & ASSURANCE

Unparalleled Trust and Insight

HRSS audits increase confidence, quality, and accuracy.

At HRSS, we employ a risk-based approach to assurance that is customized to each client’s particular industry, sector, and operations. We develop a deep understanding of each business by examining accounting practices, internal controls, and financial policies. We then identify risks – and management’s response to risks – to tailor our audits.

We offer a truly client-centric experience, with the direct involvement of a partner at all stages of the audit. Our mission is to keep clients apprised, year-round, of relevant changes in accounting standards and of regulatory shifts. When working with HRSS, our clients not only satisfy financial reporting requirements – they also gain a more layered knowledge of their entire business.

Audit and Assurance Services Include:

  • Audit, Review, and Compilation of Financial Statements
  • Agreed-Upon Procedures (AUP)
  • Single Audits and HUD Services
  • Title IV Audits
  • IFRS Reporting

Capitalize on HRSS’s Audit and Assurance Services

HRSS’s clients know they can trust HRSS to take the time to understand their businesses and deliver independent assurances to third parties of their financial performance. Moreover, HRSS’s clients receive the added value of actionable information about their procedures and operations that help them continually improve their performance. Contact us today to learn more.

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Assurance Levels

Audit of Financial Statements

A financial audit is the highest level of opinion about the accuracy of a company’s financial statements. Organizations generally seek audits to provide assurance to third parties that their financial statements are fairly presented and are in conformity with GAAP or other applicable accounting frameworks. Financial audits will benefit companies by providing stockholders, lenders, and regulators with a transparent view of a company’s performance. Besides fulfilling this, the financial audit by HRSS provides a valuable glimpse into a company’s practices, answering the question: How could operations be improved and efficiency increased?

Review of Financial Statements

If a full-blown financial audit is not required and you still have assurance needs, consider a review of financial statements, which provides limited assurance that your financial statements are presented fairly and in accordance with GAAP or other applicable standards. Based on our knowledge of your industry and business, we will evaluate your company’s financial statements using analytical procedures and through inquiries with management. Our industry knowledge and extensive experience provide our clients with actionable information on ways to improve operations.

Compilation of Financial Statements

Compilations are the lowest level of assurance services. Although it does not offer the assurance of an audit or review, a compilation improves the quality of reporting because it helps clients present data in accordance with GAAP or other accounting frameworks. During a compilation, HRSS helps management present financial data in the form of financial statements without providing assurance that no material modifications are needed. This process assists decision-makers as they analyze their numbers, and it guides clients down the path of financial health and stability.

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Agreed-Upon Procedures (AUP)

Limited risk engagements that are more flexible and cost-effective

Do I need an AUP or an Audit?

Understand that a full audit is not always required, but there is value in testing your company’s inventory, financials, accounts, operations, policies, and other data. HRSS has years of experience working within your industry, and we can help you decide whether an AUP or an audit is the best option that fits the needs of your business and its stakeholders.

An agreed-upon procedures (AUP) engagement uses procedures similar to an audit, but on a smaller scale. Different from an audit, no formal opinion will be provided on whether the company’s financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), but our clients receive a detailed report on the procedures and an analysis of our findings used to identify specific problems that require immediate action.

AUPs boast several advantages over audits. An AUP engagement allows our clients the ability to choose only the procedures they feel are necessary, which offers them greater flexibility than a traditional audit and is more cost-effective. When performing an AUP, we also have the ability to target specific non-financial data that is outside the scope of a traditional audit such as a review of internal controls.

Consider an AUP when you need to address certain information or have a specific requirement about your company’s financial and non-financial data. Our HRSS professionals work with our clients to help them customize an AUP engagement and develop the type and extent of the necessary agreed-upon procedures that will clearly identify the underlying information that our clients need.

An Agreed-Upon Procedures (AUP) Engagement can be useful in situations, such as:

  • Suspect an employee of falsifying records, misrepresenting the company’s financial results, or stealing inventory
  • Show a bank or potential investor that your inventory and receivables are valued correctly
  • M&A due diligence
  • Maximize supply chain efficiency and test whether your receivables are paid on time
  • Verifying cash balances
  • Confirm the certification of your IT infrastructure and that sensitive information is secure.
  • Verify your company is compliant with government regulations on issues such as workplace safety, healthcare, etc.
  • Requirement for income tax provisions

Contact our audit team for more information.

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SINGLE AUDITS & HUD SERVICES

Do you need help to determine if your organization is subject to the Single Audit requirements?

HRSS has extensive experience conducting both financial statement audits and audits of major federal award programs and compliance requirements. Our professionals are thoroughly familiar with the requirements of all applicable laws, regulations, and OMB Circulars, as well as with the funding sources of our clients’ programs, and will guide you through the regulations that apply to you.

Accepting federal funds leads to new requirements that must be met, which varies from program to program. Any non-federal entity who receives federal awards exceeding $750,000 during its fiscal year is required to have a Single Audit (or Uniform Guidance Audit) performed in accordance with the Single Audit Act, Universal Guidance and OMB circular requirements. We are committed to providing the most cost-effective compliance audit. We also analyze the efficiency of your controls, and we provide an opinion on whether your organization has complied with the requirements applicable to your grants.

Our clients include educational institutions, foundations, arts and cultural organizations, association and membership organizations, social health and welfare agencies, school districts and municipalities, religious organizations, local governmental units, etc. HRSS also works with for-profit entities receiving federal funding through federal departments, such as HUD.

For-profit organizations, such as multifamily housing entities and lenders, that participate in HUD programs may require program-specific audits performed under the HUD Consolidated Audit Guide. If you are a not-for-profit and governmental organization participating in HUD housing programs, you are subject to a single audit. Our HRSS audit professionals understand HUD programs and what is needed to help you stay in compliance.

If you have any questions related to HRSS’s single audit process, need help to determine if your organization is subject to the single audit requirements, or do not know which of your programs are considered major programs, please contact us for more information today.

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Title IV Audits

Maintain Title IV Compliance with HRSS

Many institutions struggle with the reporting process placing their eligibility to participate in federal aid programs at risk. The rules and regulations surrounding Federal Student Aid (FSA) programs are constantly changing and becoming more complex making the process more confusing for government and private institutes to comply with the ever-changing Student Financial Assistance and Generally Accepted Government Auditing Standards (GAGAS) requirements. HRSS’s audit professionals, therefore, work with colleges, universities, and vocational schools that participate in the Title IV program ensuring these institutions comply with Title IV laws, so they can continue to focus on creating opportunities for students. Our services include financial statement audits and Student Financial Aid compliance audits.

HRSS works with you to complete Title IV audits correctly by:

  • Helping you compile the information needed to complete the audit
  • Reviewing your internal controls and data to produce an audit report
  • Performing audits of financial statements that comply with GAGAS
  • Performing a school compliance audit that tests the applicability of the program by analyzing institutional eligibilities, student eligibilities, and more
  • Providing actionable advice to improve your performance and maintain Title IV compliance

Our Title IV audit professionals will help you maintain compliance with the United States Department of Education, Student Financial Aid, and other governmental regulatory requirements. Contact us for more information.

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IFRS Reporting

IFRS is becoming the global accounting standard. Are you ready?

Throughout the world, companies use two predominant accounting standards to report their financial results: GAAP and IFRS. Most of the countries in the world have adopted International Financial Reporting Standards (IFRS) developed by the International Accounting Standards Board (IASB). IFRS is becoming the global accounting standard for the preparation of public company financial statements.

HRSS recognizes that businesses operate in a global marketplace and understands the attention to detail and the importance of financial reporting under IFRS. However, the Securities and Exchange Commission (SEC) has not released any requirement for the adoption of IFRS as the primary financial reporting regime for U.S. companies. With the increasing pressure, convergence may be coming soon as they continue to pursue efforts to more closely align U.S. GAAP with IFRS.

Our audit professionals have extensive experience with audits of IFRS financial statements and keep abreast of the changes in IFRS and efforts to converge U.S. and international accounting standards. Convergence raises a number of issues for companies including external financial reporting, business strategies and policies, processes, financial reporting systems and underlying data, internal reporting, etc. HRSS can help your company succeed and assess the impact of IFRS on your company and on key reporting areas by using a pre-adoption assessment to identify and prioritize issues that require attention.

We can provide IFRS accounting support to make sense of the statements and captions affected by the conversion to IFRS. In our work assisting clients with their internal controls, we can assist management in managing change, assist with accounting systems and internal controls design and implementation, assist with the selection of IFRS accounting policy alternatives, and helping assess the implications. Our trained professionals can also examine operational impacts on compensation plans, loan covenants and dividend policies, as well as handle communication with stakeholders on any changes and developments.

Our services include:

  • Audits of IFRS financial statements
  • Component audit procedures for foreign-owned subsidiaries and reporting to parent auditors
  • IFRS effect evaluations
  • IFRS adoption planning
  • IFRS accounting support
  • Determining adjustments necessary to bring the financial reporting in line with the appropriate basis of accounting
  • Preparing financial statements and disclosures to meet requirements
  • Providing targeted training for accounting personnel

Differences between GAAP and IFRS:

  • GAAP is prescriptive and rules-based, whereas IFRS is subjective and principles-based
  • Last-In, First-Out (LIFO) as an inventory costing method is not permitted under IFRS
  • IFRS permits the revaluation of assets in certain circumstances
  • IFRS generally requires more footnote disclosures to support the policy elections made in the financial statements
  • IFRS uses a single-step method for impairment write-downs, rather than the two-step method used by GAAP

If your company is looking to transition to IFRS or needs assistance understanding the principles-based standards, contact us for more information.

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