Not all users of financial statements need the same degree of assurance. We therefore offer three distinct services involving financial statements: audits, reviews and compilations. These services are keyed to meet the different needs for small to mid-size, privately held companies and non-profit organizations. 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. Thus, an audit 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 has responsibility to plan and perform the audit 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 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 trends that may need explanation. A review is designed to see whether the financial statements make sense, without applying audit-type tests (such as physically inspecting assets or verifying data with third parties). If the financial statements or supporting information appear inconsistent or otherwise questionable, we may 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 accordingly.
We also provide other services to meet our clients’ needs, including defined scope engagements to test a specific segment in the business and internal control services to ensure policies and procedures are in place and being followed.
- Employee benefit plan audits
- Agreed upon procedures
- Internal controls and fraud prevention
- Due diligence exams