Audit Prep Services, LLC (“APS”) is a robust support system for public and certain private companies who need help (1) preparing for their financial statement audits and (2) interacting with their auditors during the audit process.
APS fills a significant gap between (1) the level of audit preparation, including technical competence, that companies are able to achieve and (2) the level necessary for their audit firms to efficiently complete the audit.
This gap is due to a fundamental change in the audit environment that occurred as a result of the Sarbanes-Oxley legislation and the related formation of the Public Company Accounting Oversight Board. Prior to these regulatory developments, audit firms routinely assisted their clients in arriving at the proper accounting for and disclosure of their activities.
Now, though, what was previously an interactive process between auditor and client has become a Balkanized process wherein the companies are left to their own resources to prepare their own financial statements. This includes the preparation of meticulous support schedules, as well as the research and documentation of what are often extremely complicated technical accounting issues.