RLB Audit Approach
We are committed to enhancing our knowledge of your business to perform an effective, cost efficient audit. We will schedule a planning meeting with your staff to set timelines and to schedule the fieldwork as well as agree on the information to be prepared ahead of time. At this time, we will discuss any new or emerging issues that have transpired to ensure that we are thoroughly aware of your business objectives, policies and controls. As a result of these meetings, we will be able to provide you with a detailed client assistance letter.
Client Communication
Clients place greater value on our services because they extend beyond quality audits and tax compliance. We have the background, experience & resources to meet the requirements of your organization. An important emphasis of our work will be to generate recommendations based on our analysis of operations. We would seek to identify means of improving efficiency and effectiveness of operations and keep you up to date on any tax planning opportunities.
Service Approach
Our approach to your work will stress communication with you and your staff. Specifically we will:
- Communicate the scope of our engagement to you in a written engagement letter;
- Provide you with detailed lists of schedules and documents needed in order to complete the engagement in an efficient, timely manner;
- Communicate with you on a periodic basis, to discuss any problems encountered as well as tax opportunities; and
- Provide you with timely service and delivery, which will allow you to thoroughly review the financial statements and tax returns prior to executing and filing; and,
- Consult you well in advance when issues or potential problems are discovered. We believe it is always our professional responsibility to keep you informed and not to allow any surprises.
Risk
Risk assessment is central to planning our audit. The risk assessment process gives consideration to the materiality, significance and level of your account balances and transactions. The study and evaluation of internal controls are performed as part of the risk assessment process. We prepare detailed narratives on your accounting procedures, the authorization process, and the segregation of duties. We will test the systems on a walk through basis to ensure that the systems are operating as described. Our review of internal controls identifies strengths and weaknesses in your systems and recommendations for improvement. This process identifies factors which indicate the existence of specific risks of material misstatement in your financial statements. We then tailor our auditing procedures to respond to such risk. Any issues that arise during the course of our audit will be communicated to management in a timely manner as they arise.
Management Letter
As part of our audit services, we prepare a report containing our specific recommendations and suggestions with regard to increasing the efficiency of your organization. We continue our communication throughout the year to correct potential weaknesses, maximize opportunities and assist with any internal problems you may have in implementing any of our recommendations.
Report Preparation and Audit Completion
We will prepare a draft independent auditors’ report on the financial statements and review the report with management. Once approved, we will review the financial statements and our audit opinion with your Audit Committee.
Internal Quality Control
Before audited financial statements are released, each audit engagement is subject to an internal independent review by our own Engagement Quality Control Team, which includes independent RLB assurance specialists, to ensure adherence with firm policy, Canadian Institute of Chartered Accountants (CICA) reporting requirements and Canadian generally accepted accounting principles. In addition, RLB is committed to internal quality control and annually monitors compliance with internal quality controls standards. A sample of each partner’s audit files is subject to an additional annual internal engagement quality control review. This annual internal quality control monitoring is the responsibility of a staff chartered accountant on our own Engagement Quality Control Team, who is also a part-time Institute of Chartered Accountants (ICAO) practice inspector.
Evaluation of Accounting Systems and Controls
RLB LLP’s report on controls at a client’s organization is one of the best ways for us to clearly communicate our commitment to internal controls. Our audit could enhance competitive position and reduce our clients’ business risks.
The study and evaluation of internal controls are performed as part of our risk assessment process. We prepare detailed narratives on your accounting procedures and methods through enquiry, analysis and discussion to thoroughly assess the internal control systems, including such things as authorization processes and the segregation of duties. We will test the systems on a walk through basis to ensure that the systems are operating as described. Our review of internal controls identifies key strengths and weaknesses in your systems and identifies recommendations for improvement. All significant deficiencies that we determine exist through our audit testing will be discussed with management and reported to the Board of Directors in our management letter.
