Audits – Reviews – Compilations
Greates Level of Assurance: Audit
An audit delivers the highest level of assurance. An audit is a systematic examination and review of the financial statements, including the confirmation of specific figures as established by the auditor or as determines by general practice.
Our service includes an examination of internal controls, assessment of designated transactions, and interaction with third parties. Based on our discoveries, we write a report on whether the financial statements are fairly documented and free of false data.
An audit enables you to…
- Assure stakeholders such as the investing groups, employees, customers, suppliers and pressure organizations, as to the reliability of published information.
- Expedite the payment of goods, corporate and services tax, and other dues accurately and timely, thus elimination interest, late fees, and inquiries.
- Conform to banking agreements.
- Help discourage and uncover material inaccuracy and fraud.
- Accelerate the sale and purchase transactions of businesses.
Here are the benefits…
You receive the greatest level of assurance because we explore beyond your business to acquire additional information.
We’ll typically have written correspondence with:
- Your customers, to examine outstanding receivable balances,
- Your banks, to verify terms debt balances and cash,
- Your vendors, to confirm remaining payable balances, and
- Your lawyers, for information on unresolved or impending legal action.
We also implement physical assessments by observing your inventory counting procedures and complete test counts. We document and analyzed each operating period, including cash and sales receipts, expenses and cash payments, and payroll. Our audit documents include a thorough work sequence to document the analyses and testing completed, as well as the client’s supporting operations documents.
Non-public Entity Audits
All public corporations must undergo an annual audit, but various nonpublic entities are also required to conduct an annual audit. These organizations include non-profit agencies, local governments, and other businesses receiving government contributions.
Likewise, some financial entities require audits of nonpublic institutions based on the financing quantity and/or the bank’s evaluation of the organization’s risk. Additionally, businesses with absentee ownership (for instance those owned by investment companies, or individuals who no longer operate the organization) may mandate audits to investigate their management panel.
Limited Assurance Reviews
Less involved than an audit, but more extensive than a compilation, a review engagement primarily entails the analytical methods we apply to the financial statements, and a number of inquiries we make of your entity’s management team. If the financial information or supporting documents seem unreliable or otherwise inconsistent, we may need to conduct additional methodology.
A limited review doesn’t mandate us to evaluate and investigate your organization’s internal controls or corroborate data with third parties, or physically analyze assets. Instead, a review report conveys limited assurance in the form of the expression: “We are not aware of any material modifications” for the financial documents to be in compliance with Generally Accepted Accounting Principles. Examined financial statements must include all disclosures, including necessary footnotes.
Why would a business need a review engagement? It can be an acceptable consensus, supplying the benefits of a CPA’s technical proficiency without the fees and comprehensive analysis of an audit.
Compilation – Least Amount of Assurance
When preparing financial statements for a client, we supply information that is a description of management and suggests no opinion or assurance on the documents. Compilations don’t involve inquiries of management or analytical methods. Rather, we have confidence on our expertise of accounting standards and an overall principles of your business.
Banks typically require compilations from a neutral CPA as part of their loaning covenants.
Which Report Should You Conduct?
Each level of financial statement report may meet specific requests, depending on agreements from your client’s bank or other entities, as well as meet budgetary requirements.
Recognizing each report’s particular strengths and weaknesses can aid in you choosing the most suitable one. Please contact us if you are uncertain about which report is appropriate for your company.
Comprehending each report’s unique qualities can affect your decision. Please call us at 608-210-1200 you have questions about which type of report is best for you or complete our form below for a Free Consultation.