Audit – The most in-depth analysis of your company’s financial records and offers the highest level of comfort for users of financial statements. . An audit consists of an examination of the accounting records and evidence supporting the amounts and disclosures in the financial statements and to ensure they are in accordance with Generally Accepted Accounting Procedures (GAAP). It can provide business owners with valuable information and comfort that their financial statements are fairly presented. It also equips the business with accurate information to discuss with investors, banks and shareholders.
- Who needs this? - Includes: Public companies, regulated industries (eg. Condominium corporations, Insurance companies, Credit Unions), companies with numerous shareholders or required by the bank that has provided a loan. Potential purchasers of the company may also want audited financial statements for valuation purposes.
- Review - Less in-depth than an audit, but still provides readers with comfort in the financial statements. Principles of Inquiry and Discussion with Company personnel as well as Analysis of the financial information to ensure the financial statements are in accordance with GAAP.
- Who needs this? - Includes: Companies who want assurance in the financial statements, companies with numerous shareholders or required by the bank that has provided a loan.
- Notice to Reader (Compilation) - This provides the reader with no assurance and the accountant compiles the financial statements from information provided by management. Smaller businesses with few shareholders request this service. The compilation financial statements will usually consist of a balance sheet, income statement and some limited notes. As no expression of assurance is provided, this is the least costly of the three engagements
- Who needs this? - Includes: internal use by management, to accompany the tax return, or might be required by the bank.
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