Planning the Audit

White Nelson Diehl Evans is an accounting firm that has rigorous planning processes . Our practice is to build audit plans with the close cooperation of our clients. We never impose cookie-cutter audit plans on our customers, but rather work out each engagement’s unique features. We understand that the customer has the greatest knowledge about their company and industry, and incorporating this input into the plan is key to streamlining the process.

The audit plans that White Nelson Diehl Evans develops have several steps.  First, we understand the business, its controls and flow of information.  We identify material locations, significant accounts, transactions and processes.  We then assess the financial reporting risk. Finally, we create a complete strategic audit plan in which we specify the information we will need to execute the audit. This up-front planning is invaluable, because it gives the client an opportunity to evaluate the plan and understand the information that must be provided in the course of the audit.

Among the special areas we address are inventory costing and the effects of different inventory valuation methods on particular product segments; related parties; providing analysis under different scenarios or “what if” modeling, to help business executives with a full range of strategic and tactical decisions. We evaluate transactions for completeness, accuracy, cutoff and classification.

Careful audit planning is required to create and successfully execute a schedule of critical dates and a computer template for data collection. We work closely with our clients to establish all the key calendar dates, such as the start of fieldwork, interim testing, inventory observation, confirmation of accounts payable and accounts receivable, legal matters, presentation and exit. Clients find it very reassuring to know the schedule in advance and for the audit team to effectively set the expectations. Our goal is to provide the financial statements as expeditiously as possible after completion of the audit.

Executing the Audit

When executing an audit, White Nelson Diehl Evans is committed to the principle of continuity. The nature of the financial reporting and tax filing calendar causes seasonal peaks in demand for financial accounting and audit services. Some accounting firms address this demand by performing field work and then storing the material for later, allowing them to move on to the next engagement. We follow a different model, which is to complete the audit and distribute the reports in a continuous process. Our customers benefit because they are eager to have access to the reports as soon as possible. As a firm, we benefit because it is very expensive and somewhat risky to put aside a stack of work and return to it later.

White Nelson Diehl Evans generates management letters that detail issues along with actions that can be taken to correct them, in order to strengthen the organization. We follow the procedures described in SAS-115 to write, document and present issues to management in an open forum. We find that customers appreciate the opportunity to learn about the weaknesses in their organization and consider our presentations very beneficial.

White Nelson Diehl Evans is a conservative accounting firm, which means we provide honest, unbiased management reports. Our customers are not looking for sugar-coated reporting and we don’t offer it. What we do offer is a user-friendly atmosphere, flexibility and very competitive fees.

Merger & Acquisition Due Diligence Services

We serve many clients involved in mergers and acquisitions transactions. Acquirers require due diligence efforts in which we assess the target company to validate the enterprise valuation. Our assessment can include:

  • Quality of earnings: has the target company created earnings by anomalous means, such as inflating inventory or recognizing revenue prematurely?
  • Verification of receivables and aging: has the target failed to acknowledge bad debts?
  • Tax posture: is the target involved in risky tax-related policies?
  • Accounting methods and reporting: can we confirm balance sheet details and operational validity?
  • Contracts: are contractual liabilities correctly evaluated?
  • Undiscovered issues: does the target have any “skeletons in the closet,” such as underfunded pensions?

We have performed due diligence engagements that have caused acquisitions to be scuttled because of incorrect accounting -- overstated assets, understated liabilities, overly aggressive tax postures, questionable recognition of revenue and other red flags. Very often, our due diligence work confirms the target’s valuation and facilitates completion of the acquisition.

Perspectives
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Manager Profile: David Moya

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David Moya, CPA is a senior tax manager.  In this role, he works with privately held businesses, high net-worth individuals, trusts and estates.  His experience includes preparation and review of...

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Webinar for Employee Benefit Plan Fiduciaries

6/08/17

Steve Cohen, Senior Vice President at Federated Investors, will lead a webinar on Guiding Plan Sponsors through a Review of their Fiduciary Responsibilities with a 5-Step Process, on Tuesday, June...

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How to Develop a Successful Fraud Prevention Program

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We are pleased to offer the next entry to our White Nelson Diehl Evans 2017 Series on Fraud.  As a result of our firm’s experience in conducting fraud investigations and in assessing fraud risks...

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For financial accounting and audit services, contact White Nelson Diehl Evans by filling out the short contact form or calling us at number above.

CPA's Firm Overview

At White Nelson Diehl Evans, we know how difficult it is to stay ahead of the complex and dynamic tax laws. From new standards changing revenue recognition rules to the impact of the Affordable Care Act, our goal is to help our clients stay in front of tax issues that impact your bottom line. To help in this effort, we have put together a comprehensive tax-planning guide and it’s available to download for free.

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Partner Testimonial

“Our attestation practice is focused on delivering high quality, client focused, financial statements to privately held businesses, nonprofit organizations and governmental entities. We work for you, not lenders or tax authorities, and conduct engagements with our client in mind. Not only do we assure that you meet all regulatory guidelines, and present your financials in the most favorable manner possible, we also strive to deliver added value that positively impacts your bottom line."

Dave Doran Managing Partner and Audit Partner