Audit - Highest Level of Assurance
An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general practice.
Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.
We provide audit services to large and small companies and customize audits to meet our professional standards and also remain sensitive to the clients costs and budgets. Audit objectives are outlined based on the enterprise and the needs for the audit. Audits may be a requirement based on business structure, investors, lenders or business affiliations. We work with financial institutions, insurance companies and other CPA firms and advisors to provide cost effective peace of mind.
Review - Limited Assurance
Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company's management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review doesn't require us to study and evaluate your company's internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.
Compilation - Lowest Level of Assurance
In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business. We provide compilations in a "normal course of business" with many of our clients which keeps them informed on important financial forecasts, budgets, tax projections and performance.
Which Report Should You Use?
Each type of service engagement may suit specific circumstances, depending on the needs of the business, budgetary needs and the requirements from your bank or other parties.
Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. We will work with you to determine the solution that helps you to achieve your goals cost effectively.
