Manufacturing & Distribution

During a financial statement audit, the engagement team will obtain an understanding of the entity and its environment, perform walkthroughs of key controls, perform analytics and substantive testing of financial books and records, along with other procedures to obtain reasonable assurance about whether the financial statements are free from material misstatement.

Most manufacturing companies undergo annual financial audits. However, internal audits of specific processes or departments may be conducted more frequently, depending on the company’s size and complexity. Financial statement audits are required to be performed by an independent certified public accounting firm.

• Research and Development (R&D) tax credits. 

• State, local, or federal economic incentives. 

• Sales tax exemptions. 

• Depreciation on machinery and equipment. 

• Energy-efficient commercial building deductions and credits. 

• Employee training expenses. 

• Raw materials and inventory costs. 

Sustainability regulations for manufacturing and distribution companies vary by region and industry, but are typically designed to minimize environmental impact, promote resource efficiency, and ensure regulatory compliance. Common areas include:  

• Air, water, waste management, and chemical safety standards. 

• Carbon accounting/greenhouse gas reporting. 

• Climate disclosure. 

• Energy efficiency. 

• Sustainable packaging. 

• Transportation efficiency. 

• Look for firms with experience in manufacturing industries. 

• Check their credentials and reputation. 

• Consider their size and resources. 

• Evaluate their technology and data analysis capabilities. 

• Ensure they understand your specific needs and challenges. 

• Compare fee structures and service offerings.