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Financial Statement Audit

Our Approach

You consistently spend your time focused on improving performance and increasing the bottom line at your organization—and you shouldn’t expect anything less from your accounting partner. That’s why we’ve developed a unique audit approach designed to avoid disruption to your normal day-to-day operations. We provide experienced personnel and deploy audit managers on-site for the majority of the audit to ensure a timely and effective engagement. In fact, our policy of using managers and partners to lead our engagement teams is a major factor in our clients’ satisfaction with our financial statement audits.


An audited financial statement is an SEC requirement for publicly held companies that provides assurance that your management team has presented financial statements that are free from material error. Banks, suppliers and potential buyers may also require audited financial statements as proof that your business is financially sound.

A financial statement audit from Armanino includes many of the procedures completed during a review, but greatly increases the level of work performed to test the existence, completeness and valuation of recorded financial statement balances.

Our experts will work closely with your team throughout the financial statement analysis. During the audit engagement, we will:

  • Document significant processes and evaluate/test the internal controls over such processes
  • Evaluate the performance of procedures to test for fraud and identify controls that can mitigate fraud risks
  • Complete substantive testing to verify correct tracking of assets, and liabilities, and revenues and expenses 
  • Evaluate and test revenue and expense cutoffs for end-of-period accounting, to conform with GAAP rule ASC 606.
  • Identify material and select smaller contracts for close scrutiny to test for proper revenue recognition
  • Evaluate debt, lease and other contractual agreements to identify financial obligations
  • Review potential legal contingencies
  • Observe physical inventory counts and performance independent test counts.
  • Test the adequacy and accuracy of footnote disclosures in financial statements to ensure clarity in statement presentations 
  • Ensure understanding financial statements is a top priority for you and your board, while still offering to help present the audited financial statements



FASB Project to Target Performance Reporting

The goal is to make it easier for investors and securities analysts to understand from reading a company’s financial statements how the business works.

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The SEC and FASB have been hesitant to relinquish control over accounting rules and adopt a more principles-based regime under IFRS compared to existing GAAP.

Small Banks Get Extra Year to Implement Credit Losses Standard

Updated guidance that will align the implementation date for nonpublic entities’ annual financial statements with the implementation date for their interim financial statements.

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The FASB has issued the first major changes to the accounting standards for nonprofits’ financial statement presentation. Find out how it will affect your o ...

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On July 9, 2015, the FASB officially deferred implementation of the landmark global revenue recognition accounting standard by one year; IASB followed suit on Jul ...

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Recent FASB guidance simplifies the way private companies account for some intangible assets in a business combination.

FASB Issues ASU on Pushdown Accounting

On November 18, FASB issued Accounting Standards Update (ASU) 2014-17, giving an acquired entity the option to apply pushdown accounting when there is a change-of-control event.

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The Office of Management and Budget (OMB) finalized and released comprehensive new federal grant reform guidelines on December 26, 2013.

FASB Provides Alternatives for Companies on Accounting Principles

FASB has issued two updates to Generally Accepted Accounting Principles that are intended to reduce the cost and complexity of preparing financial statements for private companies.

Nonprofits: Preparing for FASB Financial Reporting Changes

A recent survey ranked streamlining financial statements as the most important task on the Financial Standards Accounting Board’s (FASB) agenda over the next three-to-five years.

Non-GAAP Businesses Get New Option for Financial Reporting

The AICPA announced a new option for small business financial reporting, which is intended to ease reporting for smaller, privately held, owner-managed businesses that aren’t required to abide by GAAP.

Ease on Down the Road: 5 Tips for Making your Nonprofit Audit Less Stressful

Do you bite your nails before your nonprofit's external audit each year? Here are five tips for making the audit experience run more smoothly for you and your auditors.

Standard Change: FASB and IASB to Issue New Approach to Lease Accounting

Up until now, accounting for heavy industrial equipment and shipping containers to office copiers and office space has been fairly straight forward but that is changing.

Revenue Recognition Overhaul Nears Final Phase

Companies will see significant changes in codes and disclosure rules due to a joint project that will replace the huge body of existing revenue recognition standards with a new single model.

Back to the Future: Rely on Financial Statements to Make Decisions for the Future

Is your organization analyzing the RIGHT timely data to make business decisions and plan for the organization’s future?

FASB Codifies New Rules for Consolidation of VIEs

With its recent Accounting Standards Update (ASU) 2009-17, Consolidations (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, the Financial Accounting Standards Bo ...

FASB Reworks Subsequent Events Guidance

On February 24, 2010, the Financial Accounting Standards Board (FASB) finalized Accounting Standards Update (ASU) 2010-09, Subsequent Events — Amendments to Certain Recognition and Disclosure Requirements. The ASU ...