Not all users of financial statements need the same degree of assurance. To meet the different needs of small to mid-size, privately held companies and non-profit organizations, we offer three distinct services involving financial statements: audits, reviews and compilations. Our expertise as skilled auditors allows us to cost-effectively deliver a quality financial report and address compliance requirements imposed by banks, outside investors, the board of directors and internal management.
Audit – Highest Level of Assurance
An audit provides the highest degree of assurance regarding financial statements, but requires significant testing of the underlying financial transactions and a thorough understanding of the system of internal controls. It also includes confirmation with outside parties, physical inspection and observation, tracing transactions to supporting documents, and a number of other tests. The auditor's objective is to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud.
Review – Limited Assurance
A review is substantially less in scope than an audit. It requires us to have a working knowledge of your industry and key aspects of your business. We make inquiries relating to the financial statements and then apply analytical procedures designed to identify unusual items or possible misstatements that may need further consideration. A review is designed to see whether the financial statements make sense, without performing audit tests (such as physically inspecting assets or verifying data with third parties). Only if the financial statements or supporting information appear inconsistent or otherwise questionable, will we need to perform additional procedures.
Compilation – Lowest Level of Assurance
A compilation involves taking financial information provided by a company and compiling it in a proper financial statement format. A compilation carries no degree of assurance; yet, it is adequate for certain purposes. Compilations do not require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business to prepare the financial statements.
We also provide other services to meet our clients’ needs, including defined scope engagements to test a specific account or segment of the business, as well as internal control services to ensure the right policies and procedures are in place and being followed. Other attestation services include:
Employee benefit plan audits