Our Audit Approach for SOC and 401K Audits

Delivering the greatest value possible to our clients.

At K Financial, we work hard to thoroughly understand your business.  By doing so, we are able to convert information into insights and identify opportunities to improve efficiency and performance.  Our audit approach and methodology is designed to address your unique needs.

An overview of our audit approach appears below.

A. Audit Planning

Our audit planning procedures include the following:

  • Obtaining background information about the entity being audited
  • Preparing a comprehensive list of schedules and documents required for the audit
  • Assessing materiality and considering audit risk
  • Considering fraud risks
  • Evaluating the internal control structure
  • Developing the overall audit plan and audit program

B. Audit Fieldwork

We conduct audit fieldwork using a combination of analytical procedures, control testwork, and substantive testing. The procedures used to audit a particular account, class of transactions or internal control depend upon the nature of account balances, transactions or controls, and the risks we identify during audit planning. 

Our audit procedures are planned with the objective of completing the audit in the most effective and efficient manner possible. This requires us to identify and focus on high risk areas, as well as accounts that involve management estimates.

K Financial has developed a risk-based audit approach that has been highly praised by both clients and peer reviewers.  Our approach leads to a highly efficient and effective audit with significantly lower fees than our competitors can offer. Because we invest time understanding your business and the financial reporting and operational risks that you face, we are able to focus on significant classes of transactions, account balances and controls that are key to the business, subjective or based on estimates, and other high risk accounts, controls or footnote disclosures.  At the same time, we limit the time we spend on low-risk/non-critical areas.

C. Concluding the Audit and Reporting

All audit workpapers are subject to K Financial’s quality control standards and are reviewed by an engagement manager and/or partner. Audit findings, adjustments, and differences are evaluated by the engagement team and discussed with management. A comprehensive disclosure checklist is completed during the final review of the report in order to ensure that no required footnote disclosures are omitted. 


Need help navigating SOC audits, employee benefit audits, financial statement audits, or outsourcing your internal audits? Let’s chat!
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