What is the Objective of an External Audit and What Standards are Required?

Weigh the fairness of your financials
with an objective assessment by an
external auditor and gain credibility.

An audit is a systematic process of objectively obtaining and evaluating the accounts or financial records of a governmental, business, or other entity. Whereas some businesses rely on audits conducted by employees—these are called internal audits—others utilize external or independent auditors to handle this task (some businesses rely on both types of audits in some combination).

The primary objective of the external audit is to add credibility to the financial statements of the management.

The role of the external auditor is to render an independent professional opinion on the fairness of financial statements to the extent that is required by generally accepted auditing standards. External audits are often used by smaller businesses that do not have the resources or inclination to maintain internal audit systems.

The auditing process is based on standards, concepts, procedures, and reporting practices that are primarily imposed by the American Institute of Certified Public Accountants (AICPA). AICPA general standards and standards of field work declare that:

• External audits should be performed by a person or persons having adequate technical training and proficiency as an auditor.
• The auditor or auditors maintain complete independence in all matters relating to the assignment.
• The independent auditor or auditors should make sure that all aspects of the examination and the preparation of the audit report are carried out with a high standard of professionalism.
• The work is to be adequately planned and assistants, if any, are to be properly supervised.
• Independent auditors will carry out proper study and evaluation of the existing internal controls to determine their reliability and suitability for conducting all necessary auditing procedures.
• External auditors will make certain that they are able to review all relevant evidential materials, whether obtained through inspection, observation, inquiries, or confirmation, so that they can form an informed and reasonable opinion regarding the quality of the financial statements under examination.

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READ MORE>> referenceforbusiness.com: Audits, External- percentage, type, cost, Independent Auditing Standards

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
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Checklist for Small Business Tax

Start gathering the right info
for your tax professional.

Are you overwhelmed about preparing your taxes for your small business? 

There is much to gather regarding information on income and expenses! This can include different types of inventory, different types of business transportation expenses, and forms. Hiring a CPA is probably the best way to do all this, but before you throw your hands up, here is a handy checklist to help you start getting an overview, and also to help your accountant:

• Gross receipts from sales or services rendered
• Sales records (for accrual based taxpayers)
• Inventory (if applicable)

And then from your inventory:

• Beginning inventory
• Inventory purchases
• Ending inventory
• Items removed for personal purposes

SEE MORE>> HRBlock.com: Small Business Tax Prep Checklist

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READ MORE GBC Tax Services Website
For All Your Accounting Needs Call GBC 678-366-9232

The ABC's of an External Audit

A very wise step for any business is
to choose an external auditing team.

An audit is a systematic process
of objectively obtaining and evaluating the accounts or financial records of a governmental, business, or other entity. Whereas some businesses rely on audits conducted by employees—these are called internal audits—others utilize external or independent auditors to handle this task (some businesses rely on both types of audits in some combination). External auditors are authorized by law to examine and publicly issue an opinion on the reliability of corporate financial reports.

The business of external auditing
is to determine the extent to which the organization adheres to managerial policies, procedures, and requirements. The independent or external auditor is not an employee of the organization. He or she performs an examination and issues a report containing an opinion on a client's financial statements. During the course of an audit study, the external auditor also becomes well-acquainted with the virtues and flaws of the client's accounting procedures. As a result, the auditor's final report to management often includes recommendations on methodologies of improving internal controls that are in place.

The compliance audit,
the financial statements audit, and the operational audit are among the major types of audits conducted by external auditors. A compliance audit has as its objective the determination of whether an organization is following established procedures or rules. A financial statement audit (or attest audit) examines financial statements, records, and related operations to ascertain adherence to generally accepted accounting principles. An operational audit examines an organization's activities in order to assess performances and develop recommendations for improvements, or further action.

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READ MORE>> inc.com: "Audits, External" from Encyclopedia of Business Terms 

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•     GBC Audit Services Website
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Find Out About Your 2015 Credits and Deductions!

Click on the picture to go to the site.

Weigh your situation!!

Click on the scales to go quickly to the IRS page on credits and deductions in 2015. There are quite a few both for individuals and businesses, both small and large.

Examples are the Earned Income Tax Credit (EIC), and the Child and Dependent Care Credit, which help millions of families every year.

In addition to the standard deduction for individuals, common deductions include home mortgage interest, state and local tax, and charitable contributions. Many business expenses are deductible as well.

Check this out to get a preview of your tax outcome in 2015!

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READ MORE>> www.IRS.gov: Credits and Deductions
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READ MORE GBC Tax Services Website
For All Your Accounting Needs Call GBC 678-366-9232

New CPA Certification! GBC Tax is Fully Equipped for Atlanta Accounting Needs.

GBC Services, LLC can now do
even more for your business.

FOR IMMEDIATE RELEASE

The Senior Staff Accountant at GBC Tax has now completed his CPA certification.

Milad Jaberi joined GBC Services in 2011 and has worked with small businesses, specializing in the areas of payroll accounting and payroll tax compliance. Milad graduated at the top of his class earning a Master of Accounting with a Tax Concentration from Kennesaw State University in 2011. Previously, he earned a Bachelor of Business Administration in Accounting from the University of Georgia in 2009, and has now earned his CPA.

In his spare time, Milad enjoys golfing, traveling, spending time with his family, and cheering for Atlanta’s professional sports teams. He is just a part of the amazing professional team we have to work for you at GBC. Contact GBC Tax, LLC for all your accounting, payroll and HRMS, and audit and consulting needs today!

GBC Tax and Audit Services, Certified Public Accountants is located at:
1950 North Park Place SE, Suite 150, Atlanta, GA 30339.
Telephone: 678-366-9232

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For Media Inquiries: Ghassan R. Gharaizi, Quickbooks ProAdvisor and Certified Public Accountant.

Payroll: to Outsource or Not?

A smaller payroll management
company may best serve your
small business needs.

Today, small and mid-sized businesses have a wide spectrum of payroll options. On the one hand, you have in-house administrators who often employ payroll software to do the job. On the other, you find large, traditional payroll services—and a slew of smaller competitors vying for their piece of the outsourcing pie.

Can the big players meet the specialized needs of today's small and midsize businesses? Or is bringing payroll back in-house and using specialized software the best route for small to medium-sized businesses?

For a small business of around 10 people, sources have found that the cost of paying an outside agency to manage payroll, tax liabilities, documentation, and process the physical checks is less expensive than having an internal dedicated person.

Here are a few quick comparisons:

Benefits of outsourcing:

• Improved compliance and accuracy
• Time savings
• Lower long-term costs for some businesses

Benefits of in-house:

• Instant access to data
• You may be doing most of the work anyway
• Cheaper if business has under 10 people

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READ MORE>> New-Talent-Times.SoftwareAdvice.com: Should You Keep Your Payroll In-house or Outsource It?

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• Helpful Payroll Related Articles