Auditing Services in the United States
US businesses face audit requirements from lenders, investors, regulators, and the IRS depending on their size, industry, and entity structure.
US businesses face audit requirements from lenders, investors, regulators, and the IRS depending on their size, industry, and entity structure. Public companies must comply with PCAOB auditing standards and SOX internal controls, while private companies often need financial statement audits for bank covenants or investor due diligence. Fintax Support Limited prepares audit-ready working papers under US GAAP, coordinates with your external CPA firm, and supports SOC 1 and SOC 2 readiness assessments for technology and service organizations.
Regulatory Framework
The PCAOB sets auditing standards for audits of US public companies, while AICPA standards apply to private company audits. IRS examinations can be triggered by discrepancies between filed returns and financial statements. SOX Section 404 requires public companies to document and test internal controls over financial reporting annually.
Our Auditing Services in United States
Independent Financial Statement Audits (GAAS)
Prepare for and coordinate independent financial statement audits conducted under Generally Accepted Auditing Standards (GAAS) issued by the AICPA. We assemble US GAAP financial statements, audit-ready working papers, and supporting schedules so your external CPA firm can issue an unmodified opinion efficiently — whether for bank covenants, investor due diligence, or regulatory requirements.
GAAS-compliant working papers
Trial balances, lead schedules, and flux analyses indexed to AICPA AU-C standards for efficient fieldwork.
US GAAP financial statements
Balance sheet, income statement, cash flows, and footnote disclosures prepared before auditor engagement.
Substantive testing support
PBC schedules prepared for cash, revenue, receivables, and payables testing per audit program requirements.
External auditor coordination
Single point of contact for your CPA firm — managing requests, timelines, and open item resolution.
How It Works
Pre-audit readiness assessment
Review prior-year audit findings, trial balance, and US GAAP compliance gaps before fieldwork begins.
Working paper preparation
Compile PBC schedules, reconciliations, and disclosure drafts aligned to the auditor's engagement letter.
Fieldwork support
Respond to auditor inquiries, provide substantiation, and resolve testing exceptions during on-site or remote fieldwork.
Report issuance coordination
Finalize management representation letter, subsequent events review, and board approval for audit report issuance.
Pre-audit readiness assessment
Review prior-year audit findings, trial balance, and US GAAP compliance gaps before fieldwork begins.
Working paper preparation
Compile PBC schedules, reconciliations, and disclosure drafts aligned to the auditor's engagement letter.
Fieldwork support
Respond to auditor inquiries, provide substantiation, and resolve testing exceptions during on-site or remote fieldwork.
Report issuance coordination
Finalize management representation letter, subsequent events review, and board approval for audit report issuance.
Independent financial statement audits under GAAS — codified in AICPA AU-C sections — provide reasonable assurance that US GAAP financial statements are free of material misstatement. For private companies, AICPA standards apply; public company audits follow PCAOB standards, which incorporate GAAS with additional requirements. We prepare audit-ready working papers including adjusted trial balances, account reconciliations, related-party disclosures, and going-concern analyses before your external CPA firm begins fieldwork. Proper preparation reduces billable audit hours, accelerates report issuance for lender covenant deadlines, and minimizes repeat findings in subsequent years. Our team coordinates the entire PBC (Prepared by Client) process — from initial engagement letter review through management representation letter signing — ensuring your audit supports Form 1120 filings and board-approved financial statements without discrepancies.
Common Questions
Internal Audit & Management Review
Evaluate internal controls, operational processes, and financial reporting workflows through structured internal audit and management review programs. Internal audit identifies control weaknesses before external auditors or regulators do — reducing fraud risk, SOX deficiencies, and operational inefficiencies across your US organization.
Control environment assessment
COSO framework evaluation of entity-level controls, risk assessment, and monitoring activities.
Process walkthrough testing
Transaction-level walkthroughs for revenue, procurement, payroll, and treasury cycles documented with evidence.
Deficiency identification
Control deficiencies classified as deficiencies, significant deficiencies, or material weaknesses per AICPA guidance.
Management action plans
Remediation roadmaps with ownership assignments and timelines for each identified control gap.
How It Works
Risk assessment and scoping
Identify high-risk processes, entity-level controls, and SOX-relevant areas based on your industry and size.
Control documentation and testing
Document key controls, perform walkthroughs, and test operating effectiveness over the review period.
Findings report delivery
Present internal audit findings to management and audit committee with severity classifications.
Remediation tracking
Monitor management's corrective actions through follow-up testing before external audit fieldwork.
Risk assessment and scoping
Identify high-risk processes, entity-level controls, and SOX-relevant areas based on your industry and size.
Control documentation and testing
Document key controls, perform walkthroughs, and test operating effectiveness over the review period.
Findings report delivery
Present internal audit findings to management and audit committee with severity classifications.
Remediation tracking
Monitor management's corrective actions through follow-up testing before external audit fieldwork.
Internal audit and management review services evaluate whether your organization's controls over financial reporting and operations are designed and operating effectively. We apply the COSO Internal Control — Integrated Framework, the standard referenced by PCAOB AS 2201 for public company SOX Section 404 assessments and widely adopted by private companies for best-practice control evaluation. Our engagements include entity-level control assessment, process walkthroughs for revenue recognition under ASC 606, procurement and disbursement cycles, payroll controls, and IT general controls. Findings are classified per AICPA guidance as control deficiencies, significant deficiencies, or material weaknesses — the same taxonomy external auditors use. Remediation before your GAAS financial statement audit or SOC examination reduces the risk of qualified opinions, scope limitations, and repeat findings that increase audit costs year over year.
Common Questions
IRS Tax Audit Defense & Representation
Defend your business during IRS examinations with organized substantiation, professional representation, and structured response to audit notices. IRS tax audits examine whether your Form 1040, Form 1120, or Form 1065 filings match your books and third-party reported income — we reconstruct records and negotiate adjustments to minimize liability and penalties.
Form 2848 representation
Power of Attorney filed so we communicate directly with IRS Revenue Agents and Appeals Officers.
Examination response preparation
Organized schedules substantiating Schedule C deductions, Form 1120 officer compensation, and K-1 allocations.
Record reconstruction
Missing receipts and incomplete books rebuilt from bank records to support challenged items under audit.
Penalty abatement advocacy
First-time abatement and reasonable cause relief pursued for IRC Section 6651 failure-to-file and pay penalties.
How It Works
Notice analysis and POA filing
Review IRS examination letter or CP2000 notice, identify issues, and file Form 2848 for representation.
Document assembly
Gather books, bank records, receipts, and third-party forms supporting each item under examination.
Audit response and interview support
Prepare written responses, attend IRS interviews, and present substantiation for each proposed adjustment.
Resolution and appeals
Negotiate final agreement, request penalty abatement, or file protest for IRS Independent Office of Appeals.
Notice analysis and POA filing
Review IRS examination letter or CP2000 notice, identify issues, and file Form 2848 for representation.
Document assembly
Gather books, bank records, receipts, and third-party forms supporting each item under examination.
Audit response and interview support
Prepare written responses, attend IRS interviews, and present substantiation for each proposed adjustment.
Resolution and appeals
Negotiate final agreement, request penalty abatement, or file protest for IRS Independent Office of Appeals.
IRS tax audits differ fundamentally from GAAS financial statement audits — the IRS examines whether your filed return accurately reports taxable income and allowable deductions under the Internal Revenue Code, not whether financial statements comply with US GAAP. Common triggers include CP2000 notices when 1099-NEC, 1099-K, or W-2 income does not match Form 1040, and examination letters (Letter 566, Letter 2205) initiating correspondence or field audits of Form 1120 corporate returns. We file Form 2848 Power of Attorney, prepare organized workpapers linking every challenged deduction to source documents, and represent you during Revenue Agent interviews. For unagreed cases, we file protests to the IRS Independent Office of Appeals. Accuracy-related penalties under IRC Section 6662 (20% of underpayment) and failure-to-file penalties under IRC Section 6651 (5% per month) are actively contested through first-time penalty abatement and reasonable cause arguments.
Common Questions
SOC 1 & SOC 2 Compliance Audits
Prepare for SOC 1 and SOC 2 examinations under AICPA SSAE 18 attestation standards — the compliance reports US enterprise clients, SaaS platforms, and service organizations need to demonstrate control effectiveness. We document controls, build evidence repositories, and support gap remediation before your auditor's Type I or Type II examination.
SSAE 18 control documentation
Control narratives, flowcharts, and risk assessments prepared per AICPA AT-C Section 320 requirements.
SOC 1 financial reporting controls
Controls relevant to user entities' financial reporting documented for SOX and audit committee requirements.
SOC 2 Trust Services Criteria
Security, availability, processing integrity, confidentiality, and privacy controls mapped and tested.
Evidence repository build
Organized evidence packages for Type I design assessment or Type II operating effectiveness testing.
How It Works
Scoping and criteria selection
Determine SOC 1 vs SOC 2 applicability, select Trust Services Criteria, and define system boundaries.
Control design and documentation
Document control activities, map to SSAE 18 requirements, and identify design gaps for remediation.
Readiness assessment
Perform mock testing of controls and evidence collection before the formal Type I or Type II examination.
Examination support
Support your SOC auditor during fieldwork — providing evidence, resolving inquiries, and managing exceptions.
Scoping and criteria selection
Determine SOC 1 vs SOC 2 applicability, select Trust Services Criteria, and define system boundaries.
Control design and documentation
Document control activities, map to SSAE 18 requirements, and identify design gaps for remediation.
Readiness assessment
Perform mock testing of controls and evidence collection before the formal Type I or Type II examination.
Examination support
Support your SOC auditor during fieldwork — providing evidence, resolving inquiries, and managing exceptions.
SOC reports are attestation engagements governed by AICPA SSAE 18 (Statement on Standards for Attestation Engagements No. 18, which superseded SSAE 16). SOC 1 (AT-C Section 320) reports on controls at service organizations relevant to user entities' internal control over financial reporting — commonly required by SOX-regulated clients. SOC 2 reports on controls relevant to Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. Type I examinations assess control design at a point in time; Type II examinations test operating effectiveness over a period of six to twelve months. We prepare control narratives, process flowcharts, risk assessments, and evidence repositories before your CPA firm begins the SOC examination. Gap remediation completed during readiness reduces qualified opinions and exception reports that enterprise clients reject during vendor due diligence.
Common Questions
Employee Benefit Plan Audits (401k / Pension)
Prepare for Department of Labor (DOL) mandated audits of employee benefit plans including 401(k), 403(b), and defined benefit pension plans. ERISA requires an independent qualified public accountant to audit plans with 100 or more eligible participants — we assemble plan financial statements and compliance testing workpapers before your plan auditor begins.
DOL participant threshold compliance
Audit preparation for plans with 100+ eligible participants subject to ERISA annual reporting requirements.
Form 5500 alignment
Plan financial statements reconciled to Form 5500 Schedule H or I before auditor fieldwork.
Compliance testing support
Participant contribution, loan, distribution, and eligibility testing schedules prepared for auditor review.
ERISA fiduciary documentation
Investment policy statements, fee disclosures, and fiduciary meeting minutes organized for audit evidence.
How It Works
Plan record review
Review plan document, Form 5500 filings, trust statements, and payroll integration for the plan year.
Participant data reconciliation
Reconcile participant contributions, employer matches, loans, and distributions between payroll and plan records.
Compliance testing preparation
Prepare schedules for contribution limits, eligibility, loan compliance, and prohibited transaction testing.
Auditor fieldwork support
Respond to plan auditor inquiries and resolve testing exceptions before Form 5500 filing deadline.
Plan record review
Review plan document, Form 5500 filings, trust statements, and payroll integration for the plan year.
Participant data reconciliation
Reconcile participant contributions, employer matches, loans, and distributions between payroll and plan records.
Compliance testing preparation
Prepare schedules for contribution limits, eligibility, loan compliance, and prohibited transaction testing.
Auditor fieldwork support
Respond to plan auditor inquiries and resolve testing exceptions before Form 5500 filing deadline.
Employee benefit plan audits are required under ERISA Section 103(a)(3)(A) and DOL regulations at 29 CFR 2520.103-1 when a plan has 100 or more eligible participants at the beginning of the plan year. The audit must be performed by an independent qualified public accountant and reported on Form 5500 Schedule H (large plans) or Schedule I (small plans). AICPA AU-C Section 703 governs the audit of employee benefit plans. We prepare plan financial statements, reconcile participant accounts between payroll systems (ADP, Fidelity, Vanguard) and plan trust statements, and assemble compliance testing workpapers for contribution limits under IRC Section 402(g), eligibility requirements, loan provisions, and prohibited transaction review. Form 5500 is due the last day of the seventh month after plan year-end — July 31 for calendar-year plans — with extensions available via Form 5558.
Common Questions
Non-Profit & Grant Compliance Audits (Single Audit)
Prepare for Single Audit engagements required when your non-profit or government entity expends $750,000 or more in federal awards during the fiscal year. Single Audits under OMB Uniform Guidance (2 CFR 200) combine financial statement audit and federal compliance testing — we assemble the Schedule of Expenditures of Federal Awards (SEFA) and compliance workpapers.
Uniform Guidance compliance
2 CFR 200 Subpart F compliance requirements mapped to your federal award programs and cost principles.
SEFA preparation
Schedule of Expenditures of Federal Awards compiled by program and CFDA number for auditor testing.
Compliance testing support
Allowable cost, procurement, reporting, and subrecipient monitoring evidence organized by compliance requirement.
$750K threshold monitoring
Federal expenditure tracking throughout the year to determine Single Audit applicability before year-end.
How It Works
Federal award inventory
Catalog all federal grants, contracts, and pass-through awards with CFDA numbers and expenditure totals.
SEFA and compliance framework
Prepare Schedule of Expenditures of Federal Awards and map compliance requirements by major program.
Compliance evidence assembly
Organize documentation for allowable costs, procurement standards, reporting, and subrecipient monitoring.
Single Audit fieldwork support
Support auditor testing of major programs and resolve compliance findings before Form SF-SAC submission.
Federal award inventory
Catalog all federal grants, contracts, and pass-through awards with CFDA numbers and expenditure totals.
SEFA and compliance framework
Prepare Schedule of Expenditures of Federal Awards and map compliance requirements by major program.
Compliance evidence assembly
Organize documentation for allowable costs, procurement standards, reporting, and subrecipient monitoring.
Single Audit fieldwork support
Support auditor testing of major programs and resolve compliance findings before Form SF-SAC submission.
Organizations expending $750,000 or more in federal awards in a fiscal year must undergo a Single Audit under OMB Uniform Guidance at 2 CFR 200 Subpart F — combining a GAAS financial statement audit with compliance auditing of federal program requirements. The Schedule of Expenditures of Federal Awards (SEFA) is the cornerstone document, listing every federal program by Catalog of Federal Domestic Assistance (CFDA) number. Auditors perform compliance testing on major programs identified through a risk-based assessment, evaluating allowability of costs under 2 CFR 200 Subpart E, procurement standards, financial reporting, and subrecipient monitoring. Findings are reported on the Data Collection Form (SF-SAC) submitted to the Federal Audit Clearinghouse. Non-profits receiving NIH, HUD, ED, or USDA funding commonly exceed the $750,000 threshold. We prepare SEFA, compliance workpapers, and indirect cost rate documentation before your Single Audit begins.
Common Questions
Inventory & Fixed Asset Verification
Coordinate physical inventory counts and fixed asset verification procedures that external auditors require under GAAS for existence and valuation testing. Accurate inventory and asset records support US GAAP financial statements, IRS MACRS depreciation on Form 4562, and lender collateral valuations — we manage count procedures and roll-forward schedules.
Physical inventory counts
Count procedures designed and supervised per AICPA guidance with auditor observation coordination.
Fixed asset roll-forwards
Additions, disposals, transfers, and depreciation reconciled to general ledger and Form 4562 schedules.
Existence and valuation testing
Cutoff testing, obsolete inventory reserves, and lower-of-cost-or-market analysis prepared for auditors.
Multi-location coordination
Inventory counts synchronized across warehouses, retail locations, and FBA fulfillment centers.
How It Works
Pre-count planning
Design count procedures, freeze inventory movements, and prepare count sheets or RFID scanning protocols.
Physical count execution
Supervise count teams, investigate variances, and perform recounts on material discrepancies.
Roll-forward and reconciliation
Reconcile count results to perpetual records, adjust for cutoff, and post inventory adjustments.
Auditor observation support
Coordinate external auditor attendance at counts and provide fixed asset existence confirmation schedules.
Pre-count planning
Design count procedures, freeze inventory movements, and prepare count sheets or RFID scanning protocols.
Physical count execution
Supervise count teams, investigate variances, and perform recounts on material discrepancies.
Roll-forward and reconciliation
Reconcile count results to perpetual records, adjust for cutoff, and post inventory adjustments.
Auditor observation support
Coordinate external auditor attendance at counts and provide fixed asset existence confirmation schedules.
Inventory and fixed asset verification are core GAAS audit procedures under AICPA AU-C Section 501 for physical inventory observation and AU-C Section 540 for accounting estimates. Auditors must obtain sufficient appropriate evidence that inventory exists, is properly valued at lower of cost or net realizable value, and that fixed assets are recorded at correct cost basis with appropriate depreciation under US GAAP. We design and supervise physical inventory counts — including cut-off testing for goods in transit — and prepare fixed asset roll-forward schedules reconciling additions, disposals, and depreciation to the general ledger and IRS Form 4562 MACRS schedules. For eCommerce clients with FBA inventory, we reconcile Amazon warehouse reports to book balances. Obsolete and slow-moving inventory reserve analyses under ASC 330 prevent overstatement that triggers audit adjustments and potential IRC Section 6662 accuracy-related penalties on overstated COGS deductions.
Common Questions
Review & Compilation Engagements
Obtain limited assurance through review engagements or no-assurance compilation reports when a full GAAS audit is not required. Reviews follow SSARS (Statements on Standards for Accounting and Review Services) and provide inquiry-and-analytical-procedure-based comfort — compilations present management's financial data without any assurance. We prepare financial statements and supporting workpapers for both engagement types.
SSARS review engagements
AR-C Section 90 reviews with analytical procedures and management inquiries — limited assurance reported.
Compilation reports
AR-C Section 80 compilations presenting management's financial data with no assurance — clearly disclosed.
Assurance level clarity
Review provides limited assurance; compilation provides none — engagement letter sets expectations upfront.
Lender and investor packages
Financial statements formatted for banks and investors who accept review or compilation in lieu of audit.
How It Works
Engagement scoping
Determine whether review or compilation meets your lender, investor, or board requirements — not all accept both.
Financial statement preparation
Prepare US GAAP financial statements from your adjusted trial balance with required footnote disclosures.
Review procedures or compilation assembly
Perform analytical procedures and inquiries for reviews; assemble and present data for compilations.
Accountant's report issuance
Issue SSARS-compliant accountant's review report or compilation report attached to financial statements.
Engagement scoping
Determine whether review or compilation meets your lender, investor, or board requirements — not all accept both.
Financial statement preparation
Prepare US GAAP financial statements from your adjusted trial balance with required footnote disclosures.
Review procedures or compilation assembly
Perform analytical procedures and inquiries for reviews; assemble and present data for compilations.
Accountant's report issuance
Issue SSARS-compliant accountant's review report or compilation report attached to financial statements.
Not every US business needs a full GAAS audit. Review engagements under SSARS AR-C Section 90 provide limited assurance — the accountant performs analytical procedures and management inquiries but does not test internal controls or substantiate balances to the extent required in an audit. The accountant's review report states that nothing came to their attention indicating material misstatement. Compilation engagements under AR-C Section 80 provide no assurance whatsoever — the accountant presents management's financial information in the form of financial statements without verifying accuracy or completeness. The compilation report explicitly disclaims any assurance. Reviews cost significantly less than audits and are accepted by many community banks and private investors. Compilations are the lowest-cost option, suitable for internal management and some franchisor reporting. Critically, neither reviews nor compilations satisfy Single Audit, ERISA plan audit, or SOX requirements — those mandate full GAAS audits.
Common Questions
Agreed-Upon Procedures (AUP)
Commission targeted attestation engagements where specific procedures are agreed between your organization and the engaging party — lenders, investors, franchisors, or regulatory bodies. AUP reports under SSAE 18 AT-C Section 315 present findings of fact without providing an opinion, making them flexible for due diligence and compliance verification.
Custom procedure design
Specific tests agreed with the engaging party — revenue verification, cash counts, or compliance checks.
SSAE 18 AT-C Section 315
Engagements performed under AICPA attestation standards with findings reported — no assurance opinion.
Findings-of-fact reporting
Accountant reports objective results of each procedure without drawing conclusions on overall fairness.
Multi-party engagement
Procedures agreed between company, accountant, and specified users — lenders, buyers, or franchisors.
How It Works
Procedure scoping with engaging party
Define specific procedures, scope, and reporting format agreed between your organization and the requesting party.
Engagement letter execution
Document agreed procedures, responsibilities, and limitations per SSAE 18 AT-C Section 315 requirements.
Procedure performance
Execute each agreed procedure — reconciliations, confirmations, analytical tests — and document results.
AUP report issuance
Issue findings-of-fact report listing each procedure performed and its result for specified report users.
Procedure scoping with engaging party
Define specific procedures, scope, and reporting format agreed between your organization and the requesting party.
Engagement letter execution
Document agreed procedures, responsibilities, and limitations per SSAE 18 AT-C Section 315 requirements.
Procedure performance
Execute each agreed procedure — reconciliations, confirmations, analytical tests — and document results.
AUP report issuance
Issue findings-of-fact report listing each procedure performed and its result for specified report users.
Agreed-Upon Procedures engagements under AICPA SSAE 18 AT-C Section 315 allow parties to define exactly what the accountant will test and report — without the accountant providing an opinion on financial statements as a whole. Common US scenarios include lender-required revenue verification for acquisition financing, franchisor-mandated royalty calculation testing, due diligence procedures for M&A transactions, and compliance verification for specific grant requirements. The accountant performs only the procedures agreed upon and reports factual findings — users draw their own conclusions. AUP engagements differ from audits (which provide reasonable assurance on entire financial statements), reviews (which provide limited assurance), and compilations (which provide no assurance). They are also distinct from SOC examinations, which follow AT-C Section 320 with standardized control criteria. AUP flexibility makes them cost-effective when a full audit exceeds what the engaging party actually needs.
Common Questions
Frequently Asked Questions
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