For the majority of our clients, the decision whether or not an audit is required is driven by their standing credit agreements. When extending credit to a company, a bank will assess the risk associated with the loan and the level of sophistication and accuracy of the company’s financial reporting. Using that assessment, as well as the size of the facility, they will typically determine the level of assurance required for the annual (or more frequent) financial reporting. In other words, it depends.
As a general rule of thumb, once a facility reaches $750,000 – $1M, a review …read more
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