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January 2010
The Demise of the Year End Audit?
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By Randy Misch, CPA 
Principal, Audit Team Leader
How many times a year do you see or talk to your external auditor? With the implementation of Risk Based Standards and the ongoing changes with GAAP and IFRS, it better be more than just at year end. The external audit has transformed into a year round process, not just a two week project at year end.
For Apple Growth Partners to promote Healthy Growth with our clients, we need to be communicating throughout the year. We do this formally and informally. We've been doing this more recently to deal with "going concern" issues, meeting debt covenants and changes in accounting standards, but we feel the most important reason is to help our clients GROW.
The Apple Growth Partners audit process is different from most firms. It is based on strong communication and clear expectations. We know that if we communicate throughout the year, we can perform the audit efficiently and effectively, but more importantly, we can truly be responsive Business Advisors to our clients. And when each party clearly communicates their expectations, there are no surprises or unexpected outcomes.
We begin the audit process at the time of the completion of the prior year audit. There are many matters that occur at the beginning of the year that will impact the next year's financial statements and audit. We make sure the client is aware of matters that are coming down the road, such as new accounting pronouncements.
We formally meet as many times during the year as we and the client feel we should, according to those declared expectations mentioned earlier. Many times, this is dictated by new accounting pronouncements or changes in the entity. Recently, issues such as loan refinancing, going concern matters, and testing of technical transactions to gauge financial impact drove more frequent meetings.
For example, I had a client sell a subsidiary in the United Kingdom. Our firm was involved from the start to audit the transaction and to assist the client in determining the impact to the financials and income tax liability. We successfully minimized their tax liability and correctly reported their financial statements.
Another client needed to refinance their debt. We assisted them by reviewing their sales and cash flow projections and introducing them to many of our banking/financing relationships. They successfully refinanced their debt.
The efforts our audit team members make to keep in regular contact with clients, be it lunch, a quick phone call or a formal meeting, position us to offer quick, effective assistance that helps their private businesses grow.
So, one more time, how many times a year do you see or talk to your external auditor? If your year end audit is done by Apple Growth Partners, you can answer - as many times as I want.
If you want more from your year end audit than just, well, a year end audit, let's communicate! Call me at 330-867-7350 or email rmisch@applegrowth.com.
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