Excellent associations are led by people who desire to operate with genuine integrity. They want to do the right things for the right reasons, and they believe in real accountability. Association leaders have come to BMWL for audit and assurance services because of our strong reputation for helping them make sure the financial bases are covered. They often come to us after working with another accounting firm, and they share with us that they were concerned that their previous firm was not bringing matters to their attention that needed to be addressed. After asking around among leaders in the association community, they learned that BMWL is well known for just that – taking a comprehensive and highly professional approach to providing audit and assurance service that includes communicating important matters to our clients on a proactive and consistent basis.
As an example, a large and very well-known international professional association had concerns about certain aspects of its compliance and financial reporting. The association engaged BMWL to assist in identifying and addressing the issues and to audit the financial statements. One of the “Big Four” international accounting firms had previously provided services for the association. Our team identified significant compliance issues requiring attention and proactively assisted the association in addressing those issues. We assist associations in areas such as budgeting; internal controls; board governance matters; risk management; corporate structure analysis; unrelated business income issues; federal, state, and local tax compliance; representation before tax authorities, and much more.
Trade and professional associations, typically classified as 501(c)(6) organizations for federal tax purposes, represent a unique category of nonprofit organizations with unique needs. We at BMWL have extensive experience serving trade and professional associations. Our highly-motivated team has extensive experience serving associations in a variety of ways.
The BMWL Difference
When selecting an audit firm, it can be difficult to discern the differences among firms. After all, every firm says they are great at what they do, and they promise to provide excellent service. BMWL’s overall approach to serving your association is very different from that of other firms and involves a unique and exclusive combination of elements:
We do much more than respond to your questions about issues on your radar screen. We come alongside your team to help you identify important issues that are not on your radar screen. And, we provide clear recommendations for practical solutions to address the issues.
Audits
An audit is the highest level of assurance BMWL can provide with respect to an organization’s financial statements. Audited financial statements provide the organization’s governing body with the auditor’s opinion that the financial statements are presented fairly, in all material respects, in conformity with the method of accounting utilized. The opinion offers reasonable but not absolute assurance with respect to the financial statements to which it applies.
In an audit, BMWL obtains an understanding of the organization’s internal control and assesses fraud risk as it relates to the financial statements. We also corroborate the amounts and disclosures included in the financial statements by obtaining audit evidence through inquiry, physical inspection, observation, third-party confirmations, examination, analytical procedures and other procedures. An audit engagement performed by BMWL also includes an assessment of certain aspects of tax compliance by the organization.
In obtaining an understanding of internal control, BMWL typically focuses significantly on the cash processing activities of an organization, including the processes for receiving cash (whether in currency, check, or electronic form), the processes for accounting for cash, and the processes for disbursing cash either to suppliers or employees.
An audit performed by BMWL typically results in the following reports:
Reviews
Reviewed financial statements provide the organization’s governing body with comfort that, based on BMWL’s review, we are not aware of any material modifications that should be made to the financial statements for the statements to be in conformity with the method of accounting utilized. A review is substantially less in scope than an audit, and does not require obtaining an understanding of internal control, assessing the risk of fraud, or testing the organization’s records.
In a review engagement, BMWL performs procedures (primarily analytical procedures and inquiries) that will provide a reasonable basis for obtaining limited assurance that there are no material modifications that should be made to the financial statements.
A review performed by BMWL typically results in the following reports:
Compilations
A compilation represents the most basic level of service BMWL provides with respect to an organization’s financial statements. In a compilation engagement, we assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance with respect to the financial statements. In a compilation, BMWL complies with applicable regulatory standards, which require us to have an understanding of the industry in which the client operates, obtain knowledge about the client, read the financial statements, and consider whether the financial statements appear appropriate in form and free from obvious material errors.
A compilation does not contemplate performing inquiry, analytical procedures, or other procedures ordinarily performed in a review; or obtaining an understanding of the organization’s internal control; assessing fraud risk; or testing of accounting records. Compiled financial statements may be prepared without disclosures (notes to the financial statements). The compilation report provides no assurance with respect to the financial statements.
A compilation performed by BMWL typically results in the following reports:
Internal control and tax compliance advisory services
BMWL offers advisory services to assist an organization’s management in identifying internal control vulnerabilities as well as tax compliance risks and opportunities. Each such engagement is tailored specifically to the needs of the organization we are serving, and is designed to offer practical and helpful recommendations for reducing risk or for taking advantage of untapped opportunities.
In performing an internal control and tax compliance advisory services engagement, BMWL’s team makes inquiries of appropriate members of an organization’s management and staff and inspects documents and records as deemed appropriate for the specific engagement. Internal control and tax compliance advisory engagements address many of the types of internal control and tax compliance matters that BMWL would typically address in an audit engagement. The report issued in connection with an advisory services engagement is not an opinion – rather it is a summary of observations and practical recommendations.
– Church Finance: The Church Leader’s Guide to Financial Operations
– Nonprofit Financial Oversight: The Concise and Complete Guide for Boards and Finance Committees
– Board Member Orientation: The Concise and Complete Guide to Nonprofit Board Service
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