OUR SERVICES
Financial Statement Audits
Independent financial statement audits conducted under U.S.GAAS: built for private companies, nonprofits and community associations.
What Is a Financial Audit?
And who is required to have one.
A financial statement audit is an independent examination of your organization's financial statements, performed by a licensed CPA firm under U.S. Generally Accepted Auditing Standards (GAAS).
The auditor issues a formal opinion on whether your financial statements are presented fairly, in all material respects, in accordance with the applicable framework, usually U.S. GAAP.
It is the highest level of assurance available, above a review or a compilation. Funders, regulators, lenders, and state law require it, depending on your organization's type and size.
Per AICPA Professional Standards, AU-C Section 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards.
The auditor issues a formal opinion on whether your financial statements are presented fairly, in all material respects, in accordance with the applicable framework, usually U.S. GAAP.
It is the highest level of assurance available, above a review or a compilation. Funders, regulators, lenders, and state law require it, depending on your organization's type and size.
Per AICPA Professional Standards, AU-C Section 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards.
Who needs one:
Organizations with Federal Funding: spending $1,000,000 or more in federal awards in a fiscal year triggers a Single Audit under the Uniform Guidance (fiscal years beginning on or after October 1, 2024).
Private Companies: required by lenders, investors, or bonding companies as a condition of financing or contract awards. Also required for many capital raises, including Regulation A offerings.
Organizations with Federal Funding: spending $1,000,000 or more in federal awards in a fiscal year triggers a Single Audit under the Uniform Guidance (fiscal years beginning on or after October 1, 2024).
Nonprofits: required by many state charity regulators once revenue or contributions pass a threshold. Thresholds vary widely by state, from roughly $500K to $2M or more. Also required by many foundations and grantors.
HOAs & Condo Associations: required by state law in several states once revenue passes a threshold. For example, Florida requires audited statements for associations with $500K or more in annual revenue. Often required by governing documents regardless of size.
Sources: 2 CFR §200.501 (Single Audit threshold); National Council of Nonprofits, State Nonprofit Audit Requirements; Florida Statute §718.111, California Civil Code §5305 (HOA audit thresholds).
When Is a Financial Statement Audit Required?
Most audits are triggered by a law, a funder, or a lender. These are the most common.
Many states require nonprofits to file audited financial statements with their annual charitable solicitation registration once revenue or contributions pass a set threshold. Thresholds range from roughly $500K to $2M or more, depending on the state. If you fundraise in several states, the strictest one usually sets your requirement
Organizations that spend $1,000,000 or more in federal awards in a fiscal year need a Single Audit under the Uniform Guidance. This applies to fiscal years beginning on or after October 1, 2024. The Single Audit is due the earlier of 30 days after receiving the auditor's report or nine months after year-end, and it includes a financial statement audit plus testing of federal program compliance.
Foundations, government agencies, and contract awards often make audited financial statements a condition of funding. Check the reporting section of your agreement. It usually states the level of assurance required and the deadline.
Several states require HOAs and condominium associations to obtain an annual audit once revenue passes a threshold. Florida, for example, requires audited statements at $500,000 or more in annual revenue. Many governing documents require an audit regardless of size, and members can often vote to require one.
Banks commonly require audited financial statements for larger loans, lines of credit, and covenant renewals. Surety companies often require them before issuing performance or payment bonds. Missing the reporting deadline in your loan agreement can put you in technical default.
Investors, acquirers, and securities offerings expect audited historical financial statements. Regulation A Tier 2 offerings, for example, require audited financials in the offering statement. Starting the audit early avoids delaying a closing or filing.
What Does a Financial Statement Audit Include?
Every audit we perform delivers a signed report you can hand to your board, lender, or regulator, backed by documented testing.
- Risk assessmentWe learn your operations, accounting system, and internal controls to find where material misstatement is most likely.
- Internal control evaluationWe assess the design and implementation of controls relevant to financial reporting.
- Substantive testingWe test balances and transactions: cash, receivables, payables, revenue, expenses, payroll, fixed assets, debt, and net assets or equity.
- Third-party confirmationsWe confirm balances directly with banks, lenders, customers, and others.
- Analytical proceduresWe compare results to prior years, budgets, and expectations to spot unusual movements.
- Disclosure reviewWe check that your footnotes are complete and compliant with GAAP.
Audit vs. Review vs. Compilation
How the Financial Statement Audit Process Works
Most audits take 4 to 8 weeks from signed engagement letter to final report, depending on how ready your records are.
Scoping call
Lettering workshop with guru of pens, brushes, colapens, bamboo dip pens, and other instruments. Sarah will introduce you to different styles in writing and show you how to create your own handmade lettering tools.
Fixed-fee proposal and engagement letter
You receive a written scope, timeline, and fixed fee. No hourly surprises.
Planning and PBC list
We assess risk areas and send a prepared-by-client (PBC) list: one clear checklist of everything we need, uploaded through a secure portal.
Fieldwork
We test transactions, confirm balances, and evaluate controls. Fieldwork is remote by default, with on-site visits when inventory, assets, or your preference call for them.
Draft financial statements
We deliver draft statements and footnotes within two weeks of completing fieldwork.
Management review
You review the draft, ask questions, and we resolve any open items or proposed adjustments together.
Final report issuance
We issue the signed auditor's report and full financial statement package, plus any board communications and management letter.
Why Organizations Choose GreyWood CPA
Independent audits with fixed fees, senior-level attention, and a clear timeline from day one.
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Fixed, transparent fees with no surprises - Senior CPAs on every engagement
- Honest advice on whether you need an audit or a review
- One clear document request list from day one
- Nationwide service with remote-first fieldwork
- Actionable control recommendations
Frequently Asked Questions
An audit provides the highest level of assurance — the auditor independently tests and verifies your financial statements. A review provides limited assurance through analytical procedures but no testing. A compilation simply presents financial information in the proper format with no assurance. Which one you need depends on your organization type, revenue, and what your funders or governing documents require.
Most engagements run 4–8 weeks from signed engagement letter to final report. The biggest factor is how quickly your organization can provide the documents on our PBC list. Well-prepared clients often finish faster.
Fees depend on the size and complexity of your organization. We provide a fixed-fee engagement letter upfront — no surprises. Contact us for a complimentary consultation and we'll give you a clear estimate within 15 minutes.
We provide a detailed Prepared-By-Client (PBC) checklist at the start of every engagement. Typically this includes bank statements, general ledger, trial balance, board minutes, contracts, and prior year financials.
Yes — we are a nationwide firm. We conduct fieldwork remotely or on-site across the U.S.
Absolutely. First-year audits require opening balance procedures but we handle that process and walk you through every step.
Ready to Start Your Financial Statement Audit?
Tell us about your organization and deadline. We'll recommend the right service level and send a fixed-fee proposal — at no cost.