Audit & Assurance

We provide an unbiased look at your financial and operational situation with our Audit and Assurance services for nonprofit and privately held organizations.

Audit & Assurance Services include:

  • Audits, reviews and compilations
  • Financial statements—audits, reviews, compilations
  • Agreed upon procedures
  • Internal audits
  • Internal policies assurance
  • Retirement plan audits
  • Audit committee consulting
  • Forecasts and projections

Specialization
We offer specialized audit and assurance teams with in-depth experience in affordable housing, nonprofit organizations, financial institutions, healthcare providers and retirement plans.

Quality
We are committed to the highest standards in performing quality audits. Our commitment to quality and to the profession is illustrated by our participation as a reviewer in the American Institute of CPAs Peer Review Program.

 

We are proud to hold membership in the top industry assurance organizations:

American Institute of Certified Public Accountants

The AICPA represents the CPA profession nationally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations.

Governmental Audit Quality Center

The GAQC promotes the importance of quality governmental audits and the value of such audits to purchasers of governmental audit services.

Center for Audit Quality

The CAQ is an autonomous public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets.

Employee Benefit Plan Audit Quality Center

The EBPAQC is a voluntary membership organization for firms that perform ERISA employee benefit plan audits, established to promote the quality of employee benefit plan audits.

“Accounting is really about people and building rewarding relationships.”

— Fritz Duncan, CPA, Partner & Shareholder

Audit & Assurance Team


Fritz Duncan, CPA

Fritz Duncan, CPA

Partner and Shareholder

Bio

Sara Hummel, CPA

Sara Hummel, CPA

Director of Quality Control

Bio

Evan Dickens, CPA

Evan Dickens, CPA

Partner and Shareholder

Bio

Jon Newport, CPA

Jon Newport, CPA

Partner and Shareholder

Bio

Kari Young, CPA

Kari Young, CPA

Senior Manager

Bio

Sarah Fantazia, CPA

Sarah Fantazia, CPA

Manager

Bio

Mathew Hamlin, CPA

Mathew Hamlin, CPA

Manager

Bio


Questions?

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Recent News

Why You May Want to Accelerate Your Property Tax Payment Into 2017

Why You May Want to Accelerate Your Property Tax Payment Into 2017

Accelerating deductible expenses, such as property tax on your home, into the current year typically is a good idea. Why? It will defer tax, which usually is beneficial. Prepaying property tax may be especially beneficial this year, because proposed tax legislation might reduce or eliminate the benefit of the property tax deduction beginning in 2018.

Proposed changes

The initial version of the House tax bill would cap the property tax deduction for individuals at $10,000. The initial version of the Senate tax bill would eliminate the property tax deduction for individuals altogether.

In addition, tax rates under both bills would go down for many taxpayers, making deductions less valuable. And because the standard deduction would increase significantly under both bills, some taxpayers might no longer benefit from itemizing deductions.

2017 year-end planning

You can prepay (by December 31) property taxes that relate to 2017 but that are due in 2018 and deduct the payment on your 2017 return. But you generally can’t prepay property tax that relates to 2018 and deduct the payment on your 2017 return.

Prepaying property tax will in most cases be beneficial if the property tax deduction is eliminated beginning in 2018. But even if the property tax deduction is retained, prepaying could still be beneficial. Here’s why:

  • If your property tax bill is very large, prepaying is likely a good idea in case the property tax deduction is capped beginning in 2018.
  • If you could be subject to a lower tax rate in 2018 or won’t have enough itemized deductions overall in 2018 to exceed a higher standard deduction, prepaying is also likely tax-smart because a property tax deduction next year would have less or no benefit.

However, there are a few caveats:

  • If you’re subject to the AMT in 2017, you won’t get any benefit from prepaying your property tax. And if the property tax deduction is retained for 2018, the prepayment could cost you a tax-saving opportunity next year.
  • If your income is high enough that the income-based itemized deduction reduction applies to you, the tax benefit of a prepayment may be reduced.
  • While the initial versions of both the House and Senate bills generally lower tax rates, some taxpayers might still end up being subject to higher tax rates in 2018, either because of tax law changes or simply because their income goes up next year. If you’re among them and the property tax deduction is retained, you may save more tax by holding off on paying property tax until it’s due next year.

It’s still uncertain what the final legislation will contain and whether it will be passed and signed into law this year. We can help you make the best decision based on tax law change developments and your specific situation, if you have questions, contact us.

© 2017

Business Valuation Part 4: Market Approach

Business Valuation Part 4: Market Approach

This post is part of a 4-part series covering business valuation and providing guideline information on the process of valuing a business. To start at the beginning and learn what business valuation is and why a business valuation is needed, read Part 1: Levels of Value. For an in-depth look at the first two valuation approaches, read Part 2: The Asset Approach and Part 3: The Income Approach.

Part 4: The Market Approach

In the market approach, the value of the organization can be compared to recent market activity whereby sales of similar interests in the same or similar industry. Valuation multiples, which are determined by dividing the sale price by a relevant financial metric (such as revenues), can be applied to the target company to determine an estimate of fair market value.

When valuing minority interests, the value of an interest may be compared to recent market activity in equity transactions, reported through public exchanges (e.g. NASDAQ or New York Stock Exchange), of organizations in the same or similar industries, subject to similar risks. Pertinent price ratios are applied to the target interest to determine an estimate of fair market value. This method of the market approach is referred to as the publicly traded company method, guideline publicly traded company method or the GPC method.

The notion behind the guideline publicly traded company method is that prices of publicly traded stocks in the same or a similar industry, provide objective evidence as to values at which investors are willing to buy and sell interests in companies in that industry. This method involves computing a value multiple using financial data for each guideline company. The derived value multiple is then applied to the financial data of the Company to arrive at an estimate of value for the appropriate interest.

Typically, publicly traded companies are significantly larger, more diversified and have better access to capital markets than the company that is the subject of the valuation. In addition, there may be differences between the subject company growth rate and the growth rates of publicly traded companies which can have a significant impact on value. Given these differences, the multiples used in the publicly traded method of the market approach are usually adjusted before being applied to the subject company’s relevant financial metric.

When valuing controlling interests, multiples may be derived from comparable merger and acquisition transactions. A limitation of the market approach is the availability and reliability of relevant market information. This method of the market approach is commonly referred to as the merger and acquisition (M&A) method.

Merger and acquisition transaction prices may be representative of fair market value, investment or strategic value, or something in between. On one end of the spectrum, a pure financial buyer (acquiring the business as a “stand alone operation”) will pay fair market value. Unique synergies (market share or competitive elements of a transaction which positively impact other related operations of the purchaser) can create additional value for specific strategic buyers, resulting in an incremental increase over fair market value to investment value.

Since mergers and acquisitions usually represent control transactions, they are most relevant to the valuation of other controlling interests. As such, if we are valuing a minority interest, an indicated enterprise value based on M&A data must be adjusted to reflect the lack of control and marketability inherent in the subject interest.

This post concludes the overview of the different valuation methodologies. Links to the other blog posts in this series are below:

Part 1: Levels of value
Part 2: The Asset Approach
Part 3: The Income Approach

 

Business Appraiser

Jason Bolt, CFA, ASA leads the Business Valuation Team at Jones & Roth. He is an active writer and speaker on specialized business valuation topics.