An audit provides the highest level of assurance on a company’s financial statements. In an audit, the CPA firm examines financial statements by conferring with outside parties, completing physical inspections and observations, and testing selected transactions by examining support documents. An audit provides assurance that the “financial statements are free of material misstatement and are fairly presented”. An effective audit should also add value by providing practical suggestions to strengthen internal controls, improve operational efficiency, and enhance systems and procedures. We look to add value in the audit process with our in-depth analysis of your financial statements and providing practical suggestions to strengthen internal controls, improve operational efficiency, and enhance systems and procedures.
A review provides limited assurance that no material changes are needed to the financial statements. Our review process typically begins with our gaining a good understanding of your business. We would then look to obtain an understanding of your accounting and business systems, through discussions with members of your management team. Then discussions about timetables, lists of information required and all else needed for the review procedures. In the review process, constant communication with our clients enables an efficient and effective review, with no surprises. And before finalizing, we will review a draft with you and obtain approval.
A compilation of a financial statement is not designed to provide assurance on the underlying financial numbers but to reflect the performance and financial position of an organization. The CPA firm takes the numbers provided by the client and puts them in financial statement format. Because there is no analysis, the CPA firm is not allowed to render an opinion or any other form of assurance.
We will provide you with a list of the information and schedules that we will need to perform the required compilation procedures. And at the conclusion of our compilation, we will review a draft of the financial statements with you and obtain your approval.