As a business owner, you may be accountable to creditors, private investors, and shareholders, all of whom are interested in ensuring that the company’s financial statements accurately represent the true financial position of the company.
There are three types of CPA certified financial statements:
Compilations
The first level of service is the compilation. There is no verification that the numbers presented in the statements are accurate and the financial statements produced are for management and third-party use.
Reviews
More involved than a compilation, but not as comprehensive as an audit, reviews provide “limited assurance.” Key personnel are interviewed about the company’s accounting policies and procedures, industry, operations, and financial statements. A review report is issued as well.
Audits
Audit services are the highest level of service provided. We work closely with key personnel to gain knowledge of internal control systems (“checks and balances”). Verification and substantiation procedures are performed in accordance with Generally Accepted Auditing Standards (GAAS).
You may be wondering which one is best for your business. The answer depends on the level of assurance or financial accuracy that you want. For instance, you may decide a compilation is all you need this year, but in subsequent years, you may decide that a review - or even an audit - provides better information about your financials and enables you to make better decisions about the future growth of your company.
Whether your business or organization needs an audit, compilation, review - or maybe even all three - our experienced team of CPAs, accountants, and tax professionals are here to help.
Not sure which level of assurance your business needs?
Schedule an appointment today.