To give you more value, our professionals develop a thorough understanding of your business to help identify issues and opportunities, in addition to issuing reports on financial statements.
Users of financial statements do not always need the same level of assurance, so we offer three distinct services: Audit, Review, and Compilations. Each of the services is designed to give you the appropriate level of assurance based on your needs. We also provide attestation services for items outside the scope of the financial statements.
An audit is the highest level of financial statement assurance. Third parties such as bankers, credit grantors, and bonding companies often require an audit. An audit includes examining evidence on a test basis supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The role of the independent accountant in an audit is to express an opinion on fair presentation of financial statements.
In many instances, a review is sufficient for a company and its creditors. A review consists mainly of inquiries of client personnel and analytical procedures applied to financial data — it is substantially smaller in scope that an audit. A review provides limited assurance on financial statements.
As with review services, compilation services are performed in accordance with standards established by the American Institute of Certified Public Accountants (AICPA). A compilation is limited to presenting information in the form of financial statements that is the representation of management. A compilation results in no expression of an opinion or any other form of assurance by the independent accountants.
In certain cases, a client may need an independent accountant to express assurance on something other than financial statements. For example, a potential buyer may want a report on the value of a business, or a regulatory agency may want proof that an organization is in compliance with certain rules and regulations. The role of the independent accountant in an attestation engagement is to express a conclusion about the reliability of an assertion that is the responsibility of another party. The procedures to be performed are agreed upon by the independent accountant, the party providing the written assertion, and the intended user of the report.