The primary function of the certified public accountant is the audit function.

An auditing examination leading to the expression of an opinion on financial statements can be performed only by certified public accountants. Additional by-products of the examination include recommendations for internal control improvements and income tax planning.

At Skelton, Bryant, Bryant & Scarboro, P.A., auditing is our primary area of expertise. Auditing requires a thorough study and evaluation of the entity's system of internal control. This portion of the examination is usually performed at an interim date and enables our auditors to determine the nature, timing, and extent of the substantive tests to be performed to provide us with sufficient competent evidential matter for verification of the year-end account balances which appear in the financial statements. Substantive testing is accomplished through inquiry, observation, and confirmation to the extent necessary to provide the evidence required by our auditors to express an opinion on the entity's financial statements. An opinion of this kind can be rendered only by certified public accountants.

The auditor's report, or opinion, accompanies the entity's financial statements. As a by-product of the auditor's study and evaluation of the client's system of internal control, a management letter which includes comments on any significant internal control weaknesses is also prepared and submitted to management and other appropriate officials.

Other by-products of an audit engagement result from the accumulation of information relative to our client's accounting system and unique financial situation. With knowledge of our clients' accounting systems, we can make recommendations for improvements in operational controls and efficiency of operation. We can also assist clients with income tax planning and may recommend ways in which income taxes can be reduced or deferred to later periods.