August 14, 2019 by Kelly O'Farrell
Audit, Review, and Compilationare three distinct levels of service relating to financial statement reporting that we provide our business clients. Each is a useful tool in specific situations.
An Auditis the highest level of service involving a critical review and selected independent verification of financial information. The audit results in an independent, professional opinion from a certified public accountant attesting to the fairness and accuracy of your financial statements and the representations they contain.
Audits are often necessary to comply with the requirements of lending institutions, suppliers, regulatory agencies or others who rely heavily on the information contained in your financial statements. Audits provide the “highest level of assurance” about the reliability of your financial statements, and offer an assessment of your operational systems from an objective source with knowledge and experience in your industry.
A Reviewis an evaluation of your company’s financial statements using management inquiries, analytical procedures, and our knowledge of the industry and your business. The scope of a review is less than an audit, but it provides “limited assurance” that nothing came to our attention requiring modification.
A Compilationrequires the assembling of financial data from your accounting records and presenting, in the form of financial statements, information that is the representation of management (owners) without undertaking to express any assurance on the statements. The information gathered may also help in determining your need for additional accounting services. A compilation will provide the assistance needed to prepare meaningful financial statements.
Let us assist you in evaluating your financial reporting needs and determining which level of service meets your requirements.
