Audits mark a crucial milestone for your growing, evolving business. Quality, reliable audited financial statements can be the deciding factor in gaining access to needed capital for growth or as a precursor to a transaction. They serve as a litmus for outside stakeholders to gain confidence in the underlying historical financials, viability of the business or – in the case of employee benefit plans – the proper state and federal reporting on retirement plan funds.
For businesses seeking capital or involvement in a future transaction, a history of strong audited financial statements is an important factor in that process. It’s a monumental task, but we’re up for the challenge. While not everyone appreciates the nuances of our work, we do – and in fact, we enjoy it. We relish providing meaningful data and consistently executing flawless audit engagements that bring value to our clients for their business today and down the road. It shows in every phase of our work with you and in the final product.
A testament to the quality of our audit process and outcomes is the fact that we, too, are audited by our peers. And for each of our peer reviews, we have historically received the highest possible opinion.
There are three types of attestation, often confused as “audits”. They are compilations, reviews and audits. We offer all three; it is important to understand the differences.
Attestation – often confused as “audits” – has three types: compilations, reviews and audits. We also perform agreed upon procedures.
Agreed upon procedures: This attest engagement can be used to identify specific problems in a business that require immediate action. These fact-finding engagements report findings based upon the procedures performed.
Audits: By far the most common and the highest level of assurance that a CPA can provide, an audit reports on the accuracy of the financial statements to obtain reasonable assurance but not an absolute level of assurance. The level of data auditors are required to review is expansive and concludes with a formal report that expresses an opinion on whether the financial statements are presented fairly in material aspects.
Reviews: A review is broader than a compilation, but narrower in scope than an audit, providing only a limited level of assurance on the financial statements. In this case, the CPA issues a formal report that includes a statement on awareness of material modifications that should be made to the financial statements for them to be in accordance with appropriate financial reporting.
Compilations: The most basic attestation provides a cover letter from a CPA, but no opinion is rendered, nor any assurance on the validity of the accuracy of the financial statements.