Audit & Financial Statements

What we do

• Audit of annual financial statements for companies, under generally accepted auditing standards;
• Preparation of the statements themselves — balance sheet, profit and loss, cash flow statement and statement of changes in equity;
• Notes — the part that explains the numbers, and where the quality of the statements is judged;
• Audits for nonprofits, including preparation for the Registrar of Nonprofits' requirements;
• Tax adjustments and linking the statements to the annual return filed with the Tax Authority;
• Special reports as required by banks, authorities or funding bodies.

The opinion — the real product

At the end of the audit process stands the auditor's opinion. Everything else — the testing, the reconciliations, the sampling — is the work that makes signing it possible. And an opinion is not a uniform thing:

• An unqualified opinion — the statements fairly present the financial position. This is the outcome we aim for;
• An unqualified opinion with an emphasis of matter — clean, but highlighting a material matter the reader should note;
• A qualified opinion — a departure or scope limitation exists, though not material enough to negate the picture as a whole;
• A disclaimer or adverse opinion — where the statements cannot be relied upon.

The difference is not semantic. A bank that sees a qualification responds differently, and so do the Registrar of Nonprofits and a funding body. A substantial part of audit work is identifying early what might lead to a qualification — and dealing with it while that is still possible.

Who actually requires audited statements

Not only the Tax Authority. In practice they are also required by:

• Banks and credit providers — as a condition for facilities and loans;
• The Registrar of Nonprofits — as part of the conditions for a proper-management certificate;
• Government ministries and funding bodies — in grants and tenders;
• Potential investors and acquirers — in due diligence;
• Partners and shareholders — as the basis for profit distribution and decisions.

Which means: the statements are written for different readers, not only for the assessing officer. That affects what deserves explanation in the notes and how matters are presented.

How we work

1. Setting expectations early — what is required, from whom, and on what timetable;
2. An orderly requirements list rather than requests that trickle in — so you gather everything once;
3. Field work — testing, sampling, balance confirmations and counts;
4. Raising issues as we go, not at the end. An issue found in time can usually be resolved; one found at signature cannot;
5. Presenting the statements to management before signature, including what deserves attention for next year.

The audit practice at our firm is led by CPA Reut Bracha Kipper, the firm's managing director, who holds a distinction-level master's in taxation and specialises in audits and financial statements for companies.

← Read our full guide: CPA services for nonprofits

The information on this page is general and does not constitute professional advice. The audit obligation and its scope are determined by the type of entity, its size and the law applying to it.