Certified Public Accountants and Business Advisors in Knoxville, TN

Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company.

Your stockholders, creditors, or private investors have different levels of risk tolerance, so we provide three levels of assurance to meet your needs.

Audit - Highest Level of Assurance

An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general practice.

Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.

  • An Audit allows you to...
  • Here's what you get...
  • Audits are Not Just for Public Entities
  • Review - Limited Assurance
  • Compilation - Lowest Level of Assurance
  • Which Report Should You Use?
  • Preparation Engagements
  • Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information.
  • Facilitate the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations.
  • Comply with banking covenants.
  • Help deter and detect material fraud and error.
  • Facilitate the purchase and sale of businesses.

You get the highest level of assurance because we go outside your company to obtain more information. Typically, we'll have written communication with:

  • Your customers, to check outstanding receivable balances,
  • Your banks, to confirm cash or debt balances and terms, and
  • Your attorneys, for information on pending or threatened legal action.

We also perform physical inspections by observing your inventory counting methods and perform test counts. We document (and test when considered necessary) each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit working papers include detailed documentation of procedures performed as well as any relevant documentation from the client.

All public companies are required to have an annual audit, but some nonpublic entities must also undergo an annual audit. These include local governments, non-profit agencies, and other organizations receiving government grants that meet certain revenue thresholds.

Moreover, some financial institutions require audits of nonpublic companies based on the financing amount and/or the bank's assessment of the company's risk. Also, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits as checks of their management teams.

Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company's management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.

A review doesn't require us to study and evaluate your company's internal controls, verify data with third parties, or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Review financial statements must include all required footnotes and other disclosures.

Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit.  In addition, reviewed financial statements are required for all new Tennessee contractor license applications for less than $1.5 million.

In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.

Banks often require compilations from an independent CPA as part of their lending covenants.

Each type of financial statement report may suit specific circumstances, depending on requirements from your client's bank or other parties, as well as meet budgetary needs.

Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.

Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one.

Agreed upon procedures are a growing area in the accounting industry. These can be more targeted to specific area, and are not for public release, only to be used by the agreeing parties. In AUP engagements the practitioner provides the report based on factual findings with the financial information, but no assurance is expressed.

Precision Matters: Elevating Financial Clarity with Bible Harris Smith, P.C.

Precision Matters: Elevating Financial Clarity with Bible Harris Smith, P.C.

Bible Harris Smith, P.C., a leading firm based in Knoxville, TN, specializes in providing comprehensive assurance services crucial for businesses and individuals navigating complex financial landscapes. With a strong emphasis on precision and expertise, our team at Bible Harris Smith, P.C. offers a spectrum of services, including financial statement assurance, financial statement reviews, and tax compliance audits. Our commitment to ensuring the accuracy, reliability, and compliance of financial information is unwavering. Whether it's conducting meticulous financial statement audits, offering compliance review services, or providing expert guidance on contractor licensing, our certified public accountants (CPAs) bring unparalleled proficiency and dedication to every engagement. At Bible Harris Smith, P.C., we understand the significance of financial statement assurance and offer tailored solutions to meet the unique needs of each client.

Navigating Financial Clarity: Understanding the Importance of Financial Statement Assurance

Financial statement assurance stands as a cornerstone in the realm of financial reporting, offering businesses and stakeholders a compass toward accuracy and trust. This service ensures that financial statements accurately represent an organization's financial position, performance, and cash flows, instilling confidence among investors, creditors, and other stakeholders. Through a meticulous process, professionals at Bible Harris Smith, P.C. verify the fairness, reliability, and compliance of these statements, identifying potential errors or misstatements that could impact decision-making. This content explores the critical role of financial statement assurance in enhancing transparency, aiding in risk assessment, and enabling informed decision-making. By showcasing the benefits of this service, including improved credibility and trustworthiness, businesses and individuals can grasp its vital importance in maintaining financial integrity and fostering long-term sustainability.

Navigating Financial Clarity: Understanding the Importance of Financial Statement Assurance
Efficiency and Accuracy: Unveiling the Role of Financial Statement Reviews

Efficiency and Accuracy: Unveiling the Role of Financial Statement Reviews

Financial statement reviews serve as an essential tool for businesses seeking to enhance their financial reporting accuracy without the depth and rigor of a full audit. This process involves a comprehensive assessment by professionals to ascertain whether financial statements are plausible and in line with relevant accounting standards. Bible Harris Smith, P.C. conducts thorough Financial Statement Reviews, identifying any material misstatements or inconsistencies that may affect the financial statements' reliability. Through this content, we delve into the specifics of financial statement reviews, their objectives, methodologies, and the value they bring in improving reporting accuracy. By exploring the distinctions between reviews and audits, this piece aims to illuminate how Financial Statement Reviews contribute to financial transparency, instilling confidence in stakeholders while balancing efficiency and accuracy in financial reporting.

Efficiency and Accuracy: Unveiling the Role of Financial Statement Reviews

Navigating Tax Compliance Audits: Ensuring Financial Resilience

Tax compliance audits are pivotal in maintaining financial integrity and resilience for businesses and individuals alike. These audits serve as proactive measures, ensuring adherence to complex tax regulations and laws. At Bible Harris Smith, P.C., our dedicated team understands the intricate landscape of tax compliance audits and offers comprehensive services designed to navigate these challenges seamlessly.

Our approach involves meticulous examination of financial records, ensuring accuracy and compliance with ever-evolving tax laws. We assist clients in understanding audit processes, minimizing potential risks, and implementing strategies to bolster compliance measures. Beyond mere regulatory adherence, our experts aim to optimize financial efficiency while safeguarding against potential liabilities.

Through proactive engagement and a deep understanding of the nuances of tax compliance, we empower our clients to navigate audits confidently. Our commitment lies not just in meeting regulatory requirements but also in fostering financial resilience and fortifying clients' confidence in their fiscal management.

Navigating Tax Compliance Audits: Ensuring Financial Resilience
  • What is the difference between a tax compliance audit and a financial statement audit?
  • How often should businesses undergo tax compliance audits?
  • How can Bible Harris Smith, P.C. assist in preparing for a tax compliance audit?

A tax compliance audit primarily concentrates on verifying adherence to tax laws and regulations governing income, sales, property, or other specific taxes. It ensures accurate reporting of financial information to tax authorities. On the contrary, a financial statement audit focuses on examining the accuracy and reliability of financial statements. It scrutinizes the company's overall financial health, assessing the adherence to accounting standards such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards).

The frequency of tax compliance audits varies depending on diverse factors. Larger corporations or businesses in highly regulated industries might undergo audits more frequently, sometimes annually or even quarterly. Small to medium-sized enterprises may face audits less frequently, typically on an annual basis. However, changes in tax laws, significant financial transactions, or specific industry regulations might prompt more frequent audits, ensuring compliance and avoiding penalties or fines.

Our firm offers comprehensive support to prepare for tax compliance audits. We begin by conducting thorough pre-audit assessments, meticulously reviewing financial records, and identifying potential areas of concern. Our team provides guidance on maintaining accurate and detailed records, ensuring they align with the required tax regulations. Additionally, we offer proactive strategies and advice to mitigate potential risks, ensuring clients are well-prepared to navigate the audit process seamlessly. Our aim is to alleviate the stress associated with audits while ensuring compliance and minimizing any potential liabilities.

Forensic Accounting Knoxville TN

Please call if you have questions about which type of report is right for you or complete the form below for a free consultation.

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