Audit & Assurance Services

Explore Our Audit & Assurance Service Offerings

• 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:

  • BMWL’s opinion on the financial statements

  • Financial statements and related disclosures

  • BMWL’s Report on Internal Control

  • BMWL’s Report on the Audit Process

• 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:

  • BMWL’s review report expressing limited assurance on the financial statements

  • Financial statements and related disclosures

• 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:

  • BMWL’s compilation report expressing no assurance on the financial statements

  • Financial statements and (if applicable) related disclosures

• Internal Control and Tax Compliance Advisory Services

  Some nonprofit organizations are well-established, well-funded, and generally well-managed; however, the organization's management may seek a comprehensive review of its internal controls and tax compliance practices outside the scope of a formal audit. In such cases, BMWL offers tailored advisory services designed to assist in identifying potential vulnerabilities in internal controls as well as risks and opportunities related to tax compliance.

  Each engagement is customized to address the specific needs of the organization and is structured to provide practical, actionable recommendations aimed at mitigating risk and capitalizing on areas of untapped potential.

  During the course of an internal control and tax compliance advisory engagement, BMWL’s professionals makes inquiries of appropriate members of an organization’s management and staff, and review pertinent documents and records as appropriate to the scope of the engagement. These engagements often encompass many of the same areas typically examined in an audit. However, it is important to note that the report issued as part of an advisory services engagement is not an opinion – rather, it is a summary of observations and practical recommendations.

• Financial Foundations Engagements (FFE)

  A Financial Foundations Engagement (FFE) is tailored for smaller, less complex nonprofit organizations that may not yet require a full audit. It helps identify potential vulnerabilities in financial operations while promoting best practices in internal controls and regulatory compliance. The following is a breakdown of what you can expect as part of a BMWL FFE.

   Obtaining an understanding of key aspects of an organization’s financial operations, including:

  •  Internal controls over cash transactions (including areas such as segregation of duties, dual control, account reconciliation, and reviews by appropriate officials)

  • Certain insurance coverages (while our observations regarding insurance coverages are limited, they may provide useful insights for your team)

  • A limited tax compliance assessment, which includes the following areas:

    • Protecting exempt status

    • Proper worker classification (employee vs. contractor)At the conclusion of our work, we will issue a report summarizing:

    • Unrelated business income

    • Payroll tax compliance and reporting

    • Executive compensation-setting practices

    • Compliance with political activity restrictions

    • Proper handling of conflicts of interest

    • Use of subsidiaries and limited liability companies (LLCs)

    • Proper acknowledgment and receipting of charitable contributions

    • Donor-advised funds

    • And more

  At the conclusion of our work, we will issue a report summarizing:

  • Potentially significant internal control or operational vulnerabilities that we identify in the course of our work, and

  •  Tax matters that, in our judgment, may warrant further consideration by the organization’s leadership.

  While a BMWL FFE is not an audit of internal controls or a comprehensive tax compliance analysis, it can provide very useful guidance to help you proactively address risk and strengthen governance in your organization.