A financial statement audit gives your lender, investors, buyers and other financial stakeholders an independent opinion on whether your financial statements are fairly presented. It is the highest level of assurance an accounting firm provides on a private company’s financials. For many Michigan businesses, it is also a critical piece of information for a loan renewal, bonding capacity or closed deal.
Maybe your bank requires audited statements for a new loan or covenant. Maybe you are preparing for a sale, new investor or another transaction. Or maybe you are tired of an auditor who only shows up at year-end. Our partner-led teams in Detroit and Troy help you identify the right level of assurance and deliver it on schedule. Reach Out to Our Michigan Assurance Team.
Audit and assurance are related, but they are not the same thing. A financial statement audit is one type of assurance engagement. Assurance is the broader family of services that can offer stakeholders confidence in your numbers at the level, and cost, your situation calls for.
A financial statement audit is an independent examination of your financial statements and related disclosures that results in an audit opinion. It provides reasonable assurance that the financial statements are free from material misstatement and results in an opinion on whether they are fairly presented, in all material respects, in accordance with GAAP. Private companies are generally not required by law to be audited, but lenders, surety and bonding companies, investors, buyers, owners, and boards often require or request one. Our Michigan team audits closely held businesses, private equity owned businesses and large private companies.
Not every stakeholder requires an audit of the company’s financial statements. Our financial statement and assurance services give you the right level of service without unnecessary procedures.
| Audit | Review | Compilation | Agreed-Upon Procedures | |
|---|---|---|---|---|
| Level of assurance | Reasonable assurance; formal opinion | Limited assurance; no audit opinion | No assurance | No assurance; findings only |
| Typical use | Larger loans, bonding, transactions, investor reporting | Smaller credit facilities, routine lender reporting | Financial reporting when no assurance is needed | Targeted matters, such as covenant or contract compliance |
| Who asks for it | Lenders, sureties, investors, buyers, boards | Lenders, sureties, owners | Owners, management, and certain lenders or other stakeholders | Lenders, regulators, business partners |
Start with the requirement. Your loan agreement, bonding documents, investor agreements or operating agreement usually spells out the level of assurance you need. Then look ahead: rapid growth, a pending transaction or an ownership change can all justify a higher level. Our first conversation focuses on helping you identify the right type of engagement, not selling you on the most costly one.
Michigan’s manufacturing and supply chain base relies heavily on inventory, and so do its audits. In addition to focusing on inventory existence, we also look at valuation, cost accounting, revenue recognition, and the covenant and borrowing base reporting your lender relies on. For owners and CFOs, that means fewer late adjustments and a cleaner conversation with the bank.
Equipment-heavy balance sheets and multilocation operations bring their own reporting risks. We assess fleet and equipment accounting, revenue recognition for freight and logistics services, and debt covenant compliance.
For professional and business service firms, the key issues are revenue recognition, work-in-progress, and partner or owner compensation. Our experience with professional service companies helps us deliver the reporting banks and investors expect.
Developers, contractors and property owners answer to lenders, investors and other stakeholders at the same time. Our real estate and construction audit work covers job costing, revenue recognition, work-in-progress schedules, surety bonding requirements, lender and investor reporting for property-owning entities, and related-party transactions. The result is reliable reporting on a predictable timeline.
Not-for-profit organizations face financial reporting and compliance requirements that differ from those of for-profit business. Our dedicated not-for-profit team addresses areas such as revenue recognition, donor restrictions, functional expense reporting, endowments and compliance with grant and funding requirements, including Single Audits. Our goal is not just to complete the audit, but to help organizations understand financial reporting risks and strengthen processes.
Private companies have been the focus of our practice for nearly 50 years, from closely held businesses to companies with more than $1 billion in annual revenue. Our professionals complete technical training often beyond state licensing requirements, so your audit reflects current standards and best practices.
Senior members of our team have served on the AICPA’s Auditing Standards Board and its Technical Issues Committee as well as its Accounting and Review Services Committee. In practical terms, we help shape the standards your audit follows, and we know how to apply them to a private company. We offer large firm technical depth combined with personalized partner-level attention.
We take a holistic view of your business. Along with the opinion, our team shares insights through a management letter, so your audit delivers value well beyond the completed financial statements.
Our downtown Detroit office opened in 2016 in the city’s central business district. In 2026, we added our Troy office, a community that is home to more than 6,000 companies. Michigan clients work directly with local partners who are a phone call away.
“Our team has always exceeded our expectations. They are always there when we reach out. We feel Cohen & Co is a #1 accounting firm, and we are very happy to be associated with the firm.” – GuestRaunt, Inc.
Generally, no. Unlike public companies, private companies are not required by law to have an audit. However, lenders, surety companies, investors, buyers and ownership agreements often require one. Start by checking your inventory/shareholder agreements and loan and bonding documents to see what is required.
An audit is one type of assurance service, and it provides the highest level of assurance. Other services include reviews, which provide limited assurance, as well as compilations and agreed-upon procedures, which do not provide assurance. The right engagement depends on who needs the information and why.
An audit provides reasonable assurance and an opinion; a review provides limited assurance; and agreed-upon procedures report findings without providing assurance or an opinion.
Often, yes. Surety companies and lenders frequently request audited or reviewed statements, and requirements vary by provider and project size. We can help you confirm the requirement before scoping the engagement, so you receive the appropriate level of service without paying for more than you need.
A first-year audit requires additional planning as we learn your business and establish the accuracy of opening balances. We provide a clear timeline and request list early, communicate throughout the process, and help you prepare in advance to avoid year-end delays.
Whether you face a loan renewal, bonding deadline, transaction or simply need a better audit experience, your stakeholders need financial statements they can trust. Our Detroit and Troy teams deliver independent, credible reporting with the technical depth of a national firm, and they keep your broader goals as an owner in view at every step.
Our Michigan Offices |
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| Detroit 1505 Woodward Avenue, Floor 2 Detroit, MI 48226 |
Troy 1301 W. Long Lake Road, Suite 200 Troy, MI 48098 |
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