Auditing Introduction Letter
Here at Nortex, Inc. , we offer several auditing and assurance services. The most common is auditing of financial statements. In a financial statement audit, our auditors attest that financial statements are fairly stated in accordance with Generally Accepted Accounting Principles (GAAP). Publicly traded companies are required to have their financial statements audited annually by an independent auditor as required by federal law. Private companies often choose to have their financial statements audited as well to assist with obtaining financing.
Nortex, Inc. includes auditing of internal controls during auditing of financial statements. With audits of internal controls over financial statements, auditors attest to effectiveness of internal controls. By having this audit included with financial statement auditing, users gain more confidence in reporting because having effective controls reduces the likelihood of misstatements. The in-depth examination and attestation provided by auditors allows users a higher level of confidence in internal controls and reporting for financial statements.
Another service we provide is review of financial statements. A review of financial statements is similar to an audit, in that auditors attest that financial statements are stated in accordance with GAAP. However, reviews provide a lower level of assurance at less cost. Reviews of financial statements are often adequate to meet user’s needs. Reviews are a good option for nonpublic companies that want assurance of their financial statements without the price of an audit. Finally, we also provide attestation services.
The most common attestation service we provide is for information technology (IT). With this service, auditors attest to the reliability and security of electronic information. This is done through two types of services: WebTrust and SysTrust. WebTrust services provide assurance to external website users of business practices, information processes, and integrity of transactions. SysTrust provides assurance to internal users and specific external users of the reliability of information systems based on evaluations and tests.
My Role As a lead auditor for services in your area, my role is very important. I will personally choose your audit team to ensure we have team members with adequate experience, and to meet any special needs of your company. I will supervise the audit and/or any attestation services, ensuring that all services are thorough and conducted with independence and integrity. If any problems arise, I will be the liaison between the Nortex audit team and your company’s management.
Qualifications The majority of any audit team will consist of Certified Public Accountants (CPAs). To obtain the designation of CPA, individuals must obtain a Bachelor’s or Master’s degree with a major in accounting and specified number of accounting credit hours. Individuals must pass a 4-part CPA exam, and complete the required experience requirement. Specific requirements vary by state. While the majority of an audit team will be CPAs, there may be some team members who are not.
Any team member not designated as a CPA works under direct supervision of a licensed CPA, and is not allowed to complete any tasks which require a CPA qualification. Conclusion Again, we appreciate your company’s interest in Nortex, Inc. services. I personally hope that this letter has helped you more fully understand the services we provide and how they may be beneficial to your company. I would be happy to answer any questions you may have or discuss your company’s situation and how a specific service may be of use to you. I can be reached at (817) 689-0388.