Audit
An audit is generally performed in order to provide assurance to a third party decision maker including stockholders, creditors and banks, grantors, and regulators. The objective of an audit of financial statements is the expression of an opinion on the fairness with which they present, in all material respects, financial position, results of operations, and cash flows in conformity with generally accepted accounting principles (GAAP).
While performing a financial statement audit, we:
- Gain an understanding of your organization and its environment, including its internal control, to:
- Assess the risk of material misstatement of the financial statements whether due to error or fraud
- Design the nature, timing, and extent of further audit procedures that are responsive to the assessed risks
- Test your accounting records and your responses to our inquiries by obtaining sufficient appropriate and corroborating evidence through inspection, observation, confirmation, and analytical procedures
- Provide a written report expressing our opinion
Although audit services are generally provided to meet a third party requirement, we understand this service has greater value for you when we identify opportunities for your organization. With our industry knowledge, we look for ways for your organization to improve its operations, increase efficiency and effectiveness, and increase the bottom line.
Review
The objective of a review of financial statements is to express limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with GAAP.
In order to obtain a reasonable basis for the expression of limited assurance, we:
- Perform inquiry and analytical procedures
- Obtain representations from management
Although review procedures are much less in-depth than audit procedures, we use our knowledge of your industry to identify and share our recommendations to improve the results of your operations.
Compilation
The objective of a compilation of financial statements is to present in the form of financial statements, information that is the representation of management (owners) without undertaking to express any assurance on the financial statements.
We improve the quality of the compiled financial information by assisting clients in presenting it in accordance with GAAP or an other comprehensive basis of accounting (OCBOA). Although our report does not explicitly provide assurance, the fact we assisted helps provide assurance to decision-makers.
Even though compilations provide no assurance to third-party decisions makers, just the formatting of financial information in a standard and frequently comparative format, allows us to highlight and recommend ways for your organization to enhance your operations.
Audit
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