Audit

AUDIT & ASSURANCE SERVICES

Our audit team represents a valuable mix of professionals who have expertise being both auditors and industry professionals. We know what it is like to be audited and believe this separates us from our competitors. We are committed to serving private companies, family businesses, not-for-profits, local governments, and other similar entities.

Audit Governmental & Not-For-Profits

Governmental & Not-For-Profits

Volatile political and economic changes can make the management of a tight budget while maintaining services a challenge for any administrator. At KDP, we have the technical expertise you need to help you meet governmental compliance requirements as well as the cross industry experience to help you find creative ways to meet your budget challenges.

For Profit Assurance

At KDP, we work with clients to improve their overall financial reporting processes and to help them better understand their business. We know that your company is looking for the most efficient and effective high-quality audit that you can get. KDP’s audit approach is designed to foster efficiency, communication and quality during the engagement process. While this may sound simple, we believe this approach allows us to deliver peace-of-mind, value and high-quality service to our clients.

Calculators

Get Questions Like These Answered

Audit assurance refers to the level of confidence that auditors provide regarding the accuracy and reliability of financial statements or other information. It reflects the extent to which the auditor believes that the financial statements are free from material misstatement, whether due to fraud or error.

There are typically three levels of audit assurance:

  • Reasonable Assurance
  • Limited Assurance
  • No Assurance

Overall, audit assurance helps stakeholders, like investors and regulators, have confidence in the financial information being presented by an organization.

There are two main types of audit assurance. They help inform stakeholders about the reliability of financial information.

  1. Reasonable Assurance: This is the highest level of assurance provided in a full audit. Auditors perform extensive testing and analysis of financial statements and internal controls to provide a reasonable level of confidence that the statements are free from material misstatement. While it reduces the risk of undetected errors, it does not guarantee absolute accuracy.
  2. Limited Assurance: This is often provided in a review engagement, where the auditor performs limited procedures, such as inquiries and analytical procedures, to provide a moderate level of assurance. The auditor concludes that nothing has come to their attention that would indicate material misstatement, but the scope of work is less comprehensive than in a full audit.

One example of audit and assurance can be seen in the annual financial audit of a company:

Audit Process:

  1. Planning: The audit firm meets with XYZ Corp.’s management to understand the business, assess risks, and develop an audit plan.
  2. Fieldwork: Auditors conduct various procedures, including:
    • Testing Transactions: Reviewing a sample of sales and expenses to ensure they are recorded accurately.
    • Evaluating Internal Controls: Assessing how well the company’s processes prevent errors or fraud.
    • Confirmations: Sending letters to customers and suppliers to verify account balances.
  3. Analysis: Auditors analyze financial ratios and trends to spot any unusual patterns.
  4. Reporting: After completing their work, auditors issue an audit report.

In this example, the audit provides assurance to stakeholders—such as investors, creditors, and regulators—that the financial statements can be trusted. This assurance supports informed decision-making based on the company’s reported financial health.

 

  • Why is audit assurance important?

 

Overall, audit assurance plays a crucial role in promoting transparency, accountability, and trust in the financial reporting process. As a result, audit assurance is important for several key reasons:

  1. Enhances Credibility: Making the financial statements more trustworthy for stakeholders like investors, creditors, and regulators.
  2. Risk Mitigation: By identifying potential errors or fraud, audit assurance helps organizations mitigate risks.
  3. Informed Decision-Making: Stakeholders rely on accurate financial information to make decisions. Audit assurance ensures that the information is reliable, facilitating better business and investment choices.
  4. Compliance and Regulation: Audit assurance helps organizations comply with these regulations, avoiding legal penalties and enhancing operational transparency.
  5. Improved Internal Controls: The audit process often highlights where internal controls can be strengthened, leading to improved efficiency and reduced risk of fraud or errors.
  6. Stakeholder Relations: Transparent financial reporting backed by audit assurance fosters trust between a company and its stakeholders, including customers, suppliers, and employees.