What we do

A focused practice built around financial statement audit, accounting and assurance

Each service below is described in full: what it is, who it is for, what is included, what you receive, and why it matters. You can also open a dedicated page for any service. Engagements are scoped to the work we are resourced to deliver, and to the independence requirements that apply when we also act as auditor.

Statutory / external audit

Statutory audit

A statutory audit is an independent examination of an entity’s annual financial statements. At the end of the work we issue an auditor’s report that gives an opinion on whether those financial statements are fairly presented, in all material respects, in accordance with the applicable financial reporting framework.

Our financial statement audit work is planned and performed with reference to generally accepted auditing standards (GAAS) issued through the AICPA. Where an engagement relates to a public company, or is otherwise within the PCAOB’s remit, we plan the work with PCAOB auditing standards in mind. The financial statements we audit are commonly prepared under U.S. GAAP; for international clients we also audit or assist with IFRS reporting where that is the applicable framework. The precise framework is agreed with you in the terms of engagement and is identified in the auditor’s report.

The purpose of the audit is not only to meet a legal or contractual requirement. A well-run audit also gives the board, shareholders, lenders and other users a more reliable basis for decisions, and it gives management a structured opportunity to hear independent observations on the accounts and on the controls that support them.

Who it is for

Statutory audits are for companies and other reporting entities that are required, or that choose, to have their annual financial statements independently audited. Typical situations include companies whose lenders, investors or boards require an audit, groups that need a consolidated opinion, U.S. subsidiaries of international groups, and nonprofits that need a financial statement audit or a Single Audit under the Uniform Guidance.

  • Companies and other reporting entities preparing annual financial statements
  • Groups and multi-entity structures that need a coordinated audit
  • Subsidiaries whose parent or lenders require an independent opinion
  • Entities reporting under U.S. GAAP, or under IFRS where that framework applies

What is included

  • Planning and risk assessment tailored to the entity and its reporting framework
  • Testing of transactions, balances and disclosures that matter to the opinion
  • Consideration of going concern, subsequent events and related-party transactions
  • Group and multi-location coordination where this is part of the agreed scope
  • Clear communication of findings during the work, not only at the end

What you receive

  • The independent auditor’s report on the financial statements
  • A management letter of control observations and recommendations
  • Discussion of significant findings with management and, where appropriate, those charged with governance
  • A closing file that supports a more orderly engagement in the following year

Why it matters

An independent audit gives users of the financial statements a reasoned opinion from a firm that is not responsible for preparing the figures. That opinion is often a condition of lending, investment, licensing or good governance, and it is a matter of record for the directors who approve the accounts.

For management, the value also lies in the process: earlier visibility of adjustments, a written view of control weaknesses, and a set of financial statements that have been tested against a recognized framework. We have provided this work, as an independent practice, since 2001, and we are based in New York.

Group and multi-entity audits

Where the engagement covers a group or a set of related entities, we plan the work so that component information is examined on a consistent basis and in time for the group reporting deadline. The scope of each component, the use of other auditors if any, and the consolidation process are agreed at the planning stage.

Independence

We accept audit appointments only where we can maintain the independence that generally accepted auditing standards and the professional environment in the United States require. If you also wish us to provide accounting, tax or advisory services, we will tell you promptly whether that work can sit alongside the audit or should be declined or referred elsewhere.

Project and grant audits

Project audits

Project audits and expenditure reviews are special-purpose engagements. They examine whether funds advanced for a project or program have been accounted for in line with the financing agreement, and whether the report prepared for the funder or sponsor is fairly presented on the agreed basis.

The terms of reference are set by the donor, lender or sponsoring agency as well as by you. Those terms often specify the period, the budget lines, the eligibility rules, the currency, and the form of the auditor’s or reviewer’s report. Our work is then designed around those terms, rather than around a generic statutory-audit program.

These assignments sit naturally alongside our statutory audit practice, but they are not the same thing. A project audit may cover only the funded program, and it may use a reporting framework defined by the funder rather than full IFRS financial statements.

Who it is for

This work is for organizations that implement donor- or grant-funded programs, for project companies that must report to lenders or sponsors, and for entities whose financing agreements require an independent expenditure verification or special-purpose audit.

  • Non-profit organizations and implementing partners with donor-funded programs
  • Project companies and special-purpose vehicles with lender or sponsor reporting
  • Entities required to submit an independent expenditure verification
  • Organizations that need a report aligned to a specific financing agreement

What is included

  • A reading of the financing agreement, budget and any prior auditor or reviewer reports
  • Testing of reported expenditure against supporting documents and eligibility rules
  • Attention to procurement, advances, counterpart funds and cutoff, where these are relevant to the terms
  • Comparison of reported figures to the agreed budget and to the underlying books
  • A report in the form the funder or the terms of reference require

What you receive

  • The special-purpose audit or review report specified in the engagement letter
  • A schedule or findings letter on exceptions, ineligible items or control observations, where applicable
  • Discussion of findings with management in time for any response the funder requires

Why it matters

Funders, boards and implementing teams need to know that reported expenditure is supported and that the rules of the grant or facility have been taken seriously. An independent project report is often a condition of disbursement, close-out or continued funding.

We approach this work with the same professional scepticism we bring to statutory audits, and with close attention to the document that actually governs the funds. The report should be useful to the people who must act on it, not only filed to satisfy a clause in an agreement.

How this relates to your statutory audit

If your organization also has a statutory audit, we will explain how the project engagement and the statutory engagement interact, including the timing of fieldwork and any independence considerations. In some cases the two can be planned together; in others they remain separate assignments with separate reports.

Accounting and bookkeeping

Accounting & bookkeeping

Reliable books are the foundation of everything that follows: management decisions, tax filings, lender reports and, where required, an audit. Our accounting and bookkeeping service keeps ledgers current, produces management accounts you can actually use, and supports a disciplined year-end close.

The work can be ongoing bookkeeping, a periodic review and clean-up of records you already maintain, or focused help around year-end and the preparation of financial statements. We agree the chart of accounts, the reporting timetable and the responsibilities of each side so that the arrangement is clear.

Where we are also appointed as statutory auditor, independence rules may limit the bookkeeping we can do for that same entity. We will raise this at the outset and propose a scope that does not compromise an audit appointment.

Who it is for

This service is for companies, projects and other entities that need their records kept or brought up to date, that want monthly or quarterly management accounts, or that need structured support to close the year and prepare financial statements.

  • Companies that want ongoing bookkeeping and management accounts
  • Entities whose records need to be brought up to date before an audit or a financing review
  • Projects that must keep a clean ledger for funder reporting
  • Finance teams that want year-end close support without handing over day-to-day control

What is included

  • Recording and reviewing transactions in an agreed chart of accounts
  • Bank, receivables, payables and, where relevant, inventory reconciliations
  • Monthly or quarterly management accounts and a short commentary on movements
  • Year-end close support, including journals, cutoff and supporting schedules
  • Preparation of draft financial statements, where this is part of the agreed scope

What you receive

  • Up-to-date ledgers and reconciliations on the agreed cycle
  • Management accounts in a format you can take to the board or to lenders
  • A year-end pack of schedules that is ready for audit or review
  • Draft financial statements, when included in the engagement

Why it matters

Incomplete or delayed records create problems that are far more expensive to fix later: missed filings, difficult audits, and decisions taken on figures that do not hold up. A steady bookkeeping rhythm, and a close that starts before the last week of the year, prevent most of those difficulties.

We do this work with an auditor’s eye for evidence and consistency, so the records are not only current but also ready to be examined. That is useful whether or not we are the auditor — and if we are not, your appointed auditor will find a file that is easier to work with.

U.S. GAAP and IFRS reporting

US GAAP & IFRS reporting

Most U.S. companies prepare financial statements under U.S. GAAP. Groups with international parents, foreign investors, or dual-reporting needs often also prepare information under IFRS. In either case, recognition, measurement, presentation and disclosure have to follow the applicable standards, and the judgments involved — revenue, leases, financial instruments, estimates, related parties — need to be documented so that they can stand up to audit and to scrutiny by the board or a regulator.

We help management prepare financial statements under U.S. GAAP and, where required, IFRS, think through the accounting for significant transactions, and adopt new or revised standards in a structured way. The work is technical, but the output is practical: papers, disclosures and statements that a reader can follow and that an auditor can test.

We plan reporting work with the entity’s deadline clearly in view, and with the framework — U.S. GAAP, IFRS, or both — agreed at the outset. Mention of a standard describes the framework we work to; it is not a claim of a specialist accreditation.

Who it is for

U.S. GAAP and IFRS reporting support is for companies and groups that prepare financial statements under U.S. GAAP, under IFRS, or under both, that are adopting a new standard, or that need a technical paper on a significant transaction or judgment.

  • Companies and groups reporting under U.S. GAAP
  • International clients and groups that also report under IFRS
  • Entities adopting a standard for the first time or changing an accounting policy
  • Finance teams that want documented positions on significant judgments
  • Businesses preparing financial statements that will be audited or reviewed

What is included

  • Advice on recognition, measurement and disclosure under U.S. GAAP and, where applicable, IFRS
  • Support in drafting or reviewing the financial statements and the notes
  • Technical accounting papers on significant or unusual transactions
  • Assistance with the adoption of new or revised standards, including transition disclosures
  • Liaison, where appropriate, with the appointed auditor on the positions taken

What you receive

  • Draft or reviewed U.S. GAAP or IFRS financial statements and notes
  • Written technical papers that record the facts, the literature and the conclusion
  • A transition or implementation plan for new standards, where that is in scope
  • A file of judgments and estimates that can be revisited in the following period

Why it matters

Users of financial statements — boards, lenders, investors and regulators — need figures that are prepared consistently and explained clearly. Weak disclosure or an unsupported judgment is often what turns a straightforward audit into a delayed one.

Getting the accounting right before the audit starts, and writing down why a position was taken, is one of the most effective ways to protect a reporting timetable. We have supported this kind of work as part of our practice in New York for many years, alongside our audit engagements for other clients.

Internal audit, controls and risk reviews

Internal audit & controls

Internal audit looks inward. It examines whether the controls and processes that management relies on are designed and operating in a way that supports the organization’s objectives, its reporting and its compliance obligations. The addressee is usually management and those charged with governance, not the external users of the financial statements.

We provide outsourced or co-sourced internal audit, focused reviews of particular cycles — such as procurement, payroll, cash, inventory or project expenditure — and walkthroughs of the control environment that a board or audit committee can use to understand where the weaknesses are.

Where something unusual has occurred, we can also undertake a targeted review of transactions, documentation and control breakdowns to establish what happened and what should be tightened. If a formal forensic investigation or legal process is required, we will tell you and, where appropriate, work alongside the specialists or counsel you appoint. We do not present this work as a substitute for legal advice or for a statutory audit.

Who it is for

Internal audit and control reviews are for boards, audit committees and management teams that want an independent view of risk and controls, and for organizations that do not maintain a full-time internal audit function of their own.

  • Boards and audit committees seeking a risk-based internal audit plan
  • Organizations that want an outsourced or co-sourced internal audit function
  • Management teams that need a focused review of a process or a control breakdown
  • Entities preparing for a statutory audit or a lender or donor review

What is included

  • A risk-based plan agreed with those charged with governance
  • Walkthroughs and tests of controls in the cycles selected for the period
  • Targeted reviews of unusual transactions or control failures, where requested
  • Practical recommendations that distinguish prompt actions from longer-term improvements
  • Reporting in a format the audit committee or the board can use

What you receive

  • An agreed internal audit plan for the period
  • Reports on each review, with findings, risk ratings and recommended actions
  • A summary for those charged with governance, where this is part of the scope
  • Follow-up on previously agreed actions, on request, in a later cycle

Why it matters

A statutory audit is not a substitute for a working control environment, and a board that only hears about problems at year-end is hearing about them late. Internal audit, done on a risk basis and reported in plain language, gives leadership time to act.

Our internal audit work is shaped by the same evidence-led habits as our external audit practice. Findings are supported, recommendations are practical, and we remain independent of the processes we review.

Risk reviews and unusual transactions

From time to time management asks us to look at a set of transactions, a suspected control failure, or a pattern that does not make sense. We will scope that work carefully, preserve the records we examine, and report what the evidence shows. Where the matter may have legal, regulatory or criminal implications, we will say so and recommend the further steps you should consider.

Tax advisory and compliance

Tax advisory

Tax work in the United States has to sit close to the accounts. Computations, filings and positions taken with the Internal Revenue Service (IRS), with New York State, and with any other state or local tax authority that applies, should follow from records that are complete and from a clear reading of the relevant law and guidance.

We provide practical tax advisory and compliance support for companies and projects: federal, state and local income tax compliance, help with IRS matters, and sales tax support where this is part of the agreed scope, together with year-end tax health checks and assistance when an authority reviews a filing. Amounts are handled in U.S. dollars. The exact taxes and filings we can take on are agreed in the engagement letter and are limited to the work we are resourced to deliver.

Tax advice is coordinated with your accounting calendar and, where you also have an audit, with the independence rules that apply to that audit. We will not take on tax work for an audit client if doing so would compromise the audit.

Who it is for

Tax advisory and compliance support is for companies, project vehicles and other entities that need federal, state or local computations and filings prepared carefully, that want a year-end review of their tax position, or that need structured support in responding to the IRS or a state or local tax authority.

  • Companies preparing federal, state and local tax computations and related filings
  • Businesses that need support with IRS correspondence or examinations
  • Entities with sales tax collection, filing or nexus questions in New York or other states
  • Finance teams that want a year-end tax health check before filings are made

What is included

  • Federal, state and local tax computations prepared from the accounting records and the applicable law
  • Compliance support for IRS matters and for sales tax that is expressly brought into scope
  • A year-end health check of the tax position, including obvious exposures and filing dates
  • Written explanations of positions taken, so they can be revisited later
  • Support in assembling responses and documents if the IRS or another authority opens a review

What you receive

  • Tax computations and the working papers that support them, in U.S. dollars
  • A short written summary of the tax position and of any items that need a decision
  • Filing support for the returns that are included in the engagement
  • An organized file if an authority requests information

Why it matters

Tax filings that do not follow the accounts, or accounts that ignore the tax consequences of a transaction, create avoidable risk. Treating tax as part of the close, rather than as a separate afterthought, is the more reliable approach.

We work with reference to federal tax law and IRS guidance, and to New York State and, where relevant, local tax requirements, and we explain our reasoning in writing. We do not claim to replace legal counsel on disputed or litigated matters, and we will tell you when a specialist or a legal opinion is the more appropriate next step.

Business and financial advisory

Business advisory

Advisory work is for boards, owners and project sponsors who need a clear-eyed view of the numbers they are using to make decisions. It is not a substitute for an audit, and it is not a bookkeeping service. It is focused, time-bound analysis of a financial question you already have.

Typical assignments include a review of budgets and cash-flow forecasts, a health check of the finance function, a readiness review before a lending or investment process, and a structured look at the risks and reporting gaps that a board should be aware of. The work is evidence-led, in the same spirit as our audit practice.

Where a deeper investigation of suspected irregularity is required, we can scope a targeted review of records and controls, and we will be direct if the matter should also involve legal counsel or a specialist forensic team. Independence rules are considered before we accept advisory work for an audit client.

Who it is for

This service is for owners, boards, management teams and project sponsors who want an independent reading of a budget, a forecast, a finance function or a reporting pack, without necessarily commissioning a full statutory audit.

  • Boards and owners reviewing budgets, cash flow or management information
  • Management teams preparing for a lender, investor or due-diligence process
  • Organizations that want a health check of their finance function and close process
  • Sponsors who need a structured view of reporting or control risks on a project

What is included

  • A clearly written scope and a short list of questions the work is meant to answer
  • Review of budgets, forecasts, management accounts or the finance-function process, as agreed
  • Identification of gaps, inconsistencies and risks in the information you are using
  • Practical recommendations, ranked so that it is clear what should be done first
  • A discussion of findings with the people who commissioned the work

What you receive

  • A written report or memorandum of findings and recommendations
  • Supporting schedules or illustrations where they help to make a point
  • A closing discussion so that the report is understood, not only received

Why it matters

Decisions taken on a forecast that does not hang together, or on a finance function that cannot close the books, are decisions taken on weak ground. An independent review, done before the deadline or the fundraising, is usually the less costly moment to find the problems.

We keep advisory work tightly scoped so that you know what you are commissioning and what you will receive. The tone is the same as the rest of our practice: independent, written, and careful about the limits of the assignment.

Risk advisory

On request we will review the way an organization identifies and reports financial and operational risks, or we will examine a particular area of concern — for example revenue leakage, procurement, or the controls around cash and related parties. The product is a set of observations and recommended actions, not a formal audit opinion.

Industries we serve

Companies and projects across a range of sectors

We provide audits for private equity, construction, real estate, renewable energy, oil and gas, non-profit organizations, legal services, tourism, education, and more. Each of these sectors has its own reporting questions; the notes below explain the challenges we typically see and how we approach the work.

Private Equity

Independent audits and financial reporting reviews for funds, portfolio companies, and investment vehicles.

Construction

Audits of contractors and project vehicles, covering contract accounting, retentions, and milestone billing.

Real Estate

Assurance for property companies, developers, and investment vehicles, with attention to assets and rental income.

Renewable Energy

Audits for power producers and project companies in solar, wind, and other renewable energy structures, including tax-credit and tax-equity reporting questions.

Oil and Gas

Independent audits of U.S. operators and service companies across oil, gas, and related project structures.

Non-profit Organizations

Audits for 501(c)(3) and other nonprofits, including Uniform Guidance (Single Audit) work where federal awards are expended.

Legal Services

Statutory audits and accounting support for law firms and legal practices, including partnership reporting.

Tourism

Audits for hospitality, travel, and tourism operators with seasonal revenue and multi-location reporting.

Education

Audits of schools, colleges, and education providers, covering tuition, grants, and statutory reporting.

And more

We also work with organizations in other sectors. Get in touch to discuss an audit in your industry.

Private Equity

Private equity and investment structures often involve funds, holding companies and portfolio entities, each with its own reporting calendar, valuation questions and investor reporting needs. Audits in this sector have to look carefully at the substance of transactions, the treatment of investments and fair value, management fees and carried interest where they arise, and the way group information is assembled for investors and lenders.

We audit and review financial information for funds, portfolio companies and related investment vehicles, and we coordinate work across entities when a group or parallel set of reports is required. Our aim is to give those charged with governance, and the investors who rely on the figures, a clear view of whether the financial statements are fairly presented under the applicable framework, typically U.S. GAAP, or IFRS where that is the framework required by international investors or a foreign parent.

Construction

Construction and contracting businesses are shaped by long-term contracts, mobilization payments, retentions, variation orders, claims and the timing of profit recognition. These features make cutoff, work in progress and contract asset or liability balances some of the more judgemental areas in an audit, and they often sit alongside performance bonds, advances and project-level cash controls.

We audit contractors, subcontractors and project vehicles with these contract-accounting issues in mind. Our work typically addresses how revenue and costs are measured on contracts, whether retentions and claims are recognized on an appropriate basis, and whether project records support the balances in the financial statements. The result is reporting that a board, lender or joint-venture partner can read with a clearer understanding of contract performance.

Real Estate

Property companies, developers and real-estate investment vehicles hold assets whose value, rental income, development costs and financing structures need careful measurement and disclosure. Inventory versus investment-property classification, borrowing costs, related-party lettings and the timing of revenue on property sales are recurring points of focus in this sector.

Our audits of real-estate businesses pay particular attention to the recognition and disclosure of property assets, rental and service-charge income, development work in progress and the debt that often accompanies a portfolio. We also consider the disclosures that users need in order to understand valuation bases, commitments and related-party arrangements, so that the financial statements present a coherent picture of the property operation.

Renewable Energy

Renewable energy projects — including solar, wind and other power structures — are frequently set up as project companies with construction phases, offtake arrangements, financing covenants and, later, operating revenues. Reporting has to capture capitalization of project costs, the point at which assets are ready for use, tariff or offtake income, and the terms of the financing that underpins the project. In the United States, investment and production tax credits, tax-equity structures and related disclosure are often material to how a project is financed and reported.

We provide audits for project companies and operators in the renewable energy sector, from development and construction through to operations. Engagements are planned around the stage the project has reached, the reporting required by lenders or investors, the treatment of renewable energy tax credits where they apply, and the framework under which the financial statements are prepared, typically U.S. GAAP. The work is designed so that sponsors, boards and financiers can rely on figures that reflect the substance of the project.

Oil and Gas

U.S. oil and gas operators and service companies deal with joint interest arrangements, well or contract costs, lifting or service revenue, royalty and production taxes, and, in many cases, complex group or contractual structures. Measurement of property, plant and equipment under U.S. GAAP, asset retirement obligations where they exist, and related-party or joint-venture balances often require particular care.

We audit operators and service companies across oil, gas and related project structures, focusing on the transactions and balances that matter for the entity in front of us rather than on a generic industry checklist. The work is carried out with reference to generally accepted auditing standards and the financial reporting framework adopted by the entity, typically U.S. GAAP, so that boards and other users receive an independent opinion on a consistent basis.

Non-profit Organizations

U.S. nonprofits, including 501(c)(3) organizations, foundations and implementing partners, are commonly accountable both for financial statements and for donor or grant reports prepared under specific financing agreements. Restricted funds, contribution revenue, procurement rules, and the cutoff of program expenditure are typical areas of attention. Organizations that expend federal awards may also be subject to a Single Audit under the Uniform Guidance, and the audience for the report often includes boards, donors and, in some cases, regulators.

We undertake financial statement audits and project or grant audits for nonprofit organizations, including Single Audit work under the Uniform Guidance where federal awards are expended. The terms of each funder agreement are kept in view alongside the applicable financial reporting framework, typically U.S. GAAP. Our reports are written so that boards and the partners who fund the work can see how funds have been accounted for and whether the financial statements or the special-purpose report are fairly presented in accordance with the agreed basis.

Tourism

Hospitality, travel and tourism operators often have seasonal revenue, advance deposits, multi-location operations, inventory and a high volume of cash or card transactions. Revenue cutoff, agency versus principal presentation, loyalty or package arrangements, and fixed-asset maintenance programs are among the issues that can affect the financial statements.

We audit hotels, travel operators and other tourism businesses with these operating patterns in mind. Procedures are designed around the revenue cycle, deposits and advances, location-level reporting and the assets used in the operation, so that the financial statements reflect a full season of activity rather than a narrow snapshot. Boards and owners then have a more reliable basis for reviewing performance and financing.

Education

Schools, colleges and other education providers typically receive tuition fees, sometimes alongside grants, donations or government support. Deferred income on fees billed in advance, scholarship or concession arrangements, payroll, and the stewardship of restricted funds are common reporting issues, and a wide group of stakeholders may rely on the accounts.

Our audits of education providers address tuition and related income, grant or donation accounting, payroll and the presentation of restricted and unrestricted funds where these distinctions apply. The work is planned so that boards, proprietors and, where relevant, funders receive financial statements prepared on a consistent basis and independently examined under generally accepted auditing standards.

We also work with organizations in other sectors. If your industry is not listed here, get in touch to discuss an audit or a related engagement.

Questions we are often asked

Audits, timelines, documents and fees

Straightforward answers about how an engagement with Silverstone Audit typically works. If your question is not listed, contact us.

1. What is a statutory audit, and who typically needs one?

A statutory audit is an independent examination of an entity’s annual financial statements, resulting in an auditor’s report that gives an opinion on whether those statements are fairly presented in accordance with the applicable financial reporting framework. In the United States, many companies and other reporting entities are required to have their financial statements audited by the terms of a lending or investment agreement, by a board or investor policy, or, for certain nonprofits, by state law or by the Uniform Guidance when federal awards are expended. Public companies are subject to additional requirements, including PCAOB standards where they apply. Others choose to have an audit because shareholders, boards or counterparties want the assurance that comes with an independent opinion. If you are unsure whether an audit is required in your circumstances, we will talk through the position with you at the outset.

Ready to discuss your audit or reporting needs?

Tell us about the company or project and the work you need, and we will come back to you.