Manufacturing and Distribution

We have developed our approach to assessing audit risk in manufacturing environments based on many years of experience in the industry. We start by developing a complete understanding of the manufacturing process, including initial raw material costs, additional cost elements added during the manufacturing processes, and manufacturing overhead cost pools. Also taken into account:

• Financing agreements
• Fixed assets
• Internal controls
• Interstate transport
• Inventory cost accounting system
• Inventory valuation (raw materials, work-in-process and finished product)
• Material contracts
• New accounting system implementation / transition
• Owned and leased property
• Relevant financial statement accruals
• Revenue recognition policies
• Vendor relationships and distribution

This big-picture perspective gives us the ability to provide thoughtful advice while conducting audits and providing tax consulting services.