Audits, Reviews and Compilations


An audit consists of expressing an opinion on the reliability of the information in the financial statements. We have experience auditing local governments, manufacturing, public utilities, health care, lumber, and non-profit organizations. We also perform a variety of “agreed upon procedures” attest engagements.


A review engagement is a lower level of attestation than an audit and results in a limited assurance accountants’ report. It consists of performing numerous analysis and inquiries of management regarding the information in the financial statements as well as reviewing the financial statements for proper presentation and disclosure.


A compilation consists of presenting the financial statements in a format that is consistent with the AICPA’s standards. This type of engagement does not include any expression of assurance as to the reliability of the information presented. It is the lowest level of attest service a CPA can provide.

Contractual obligations, bank requirements, and corporate by-laws normally dictate the level of service required.

Local Governments

Did you know that Martin Starnes & Associates CPAs, P.A. (MSA) is a leading provider of governmental audit services? These services include auditing financial statements in accordance with Government Auditing Standards and consideration of the governmental unit’s internal controls and tests of compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.

MSA focuses on providing audits of financial statements as required by auditing standards generally accepted in the United States of America. We audit compliance with the specific requirements of major federal and state programs under the guidelines of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Implementation Act, compliance with other laws and regulations, and design of an internal control system as required by Generally Accepted Government Auditing Standards (GAGAS “Yellow Book”). Each of the counties and most of the municipalities we audit receive millions of dollars in federal and state awards each year that our firm must audit. We have experience in designing procedures to test new programs as well as developing recommendations to remedy deficiencies in administering existing programs.

MSA has been conducting Single Audits and Yellow Book audits since 1992. We began with one municipal audit and have grown the practice to one of the largest governmental auditing practices in North Carolina. Currently we audit over 90 governmental units. Virtually all of our government clients are subject to the generally accepted government auditing standards contained in the “Yellow Book”. Approximately 80% of our government audit hours in 2020 were on engagements under the provisions of the federal and state single audit acts.

Business Valuations

Our business valuation services include estate valuations of closely held businesses, analysis of divestitures, acquisitions and cost segregations, gift tax planning, and litigation support. We have determined the value of numerous closely held businesses for equitable distribution purposes in divorce cases. We have been appointed independent valuators by the court in divorce and civil disputes where our report was binding on all parties. Our reports have been successfully offered and defended as expert testimony in a variety of civil disputes. Please contact our office for attorney and client references regarding our performance in this area.


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