We provide several levels of financial statement services: Audit, review, compilation, and attest. All work is performed in accordance with standards established by the American Institute of Certified Public Accountants.
An audit provides the highest level of assurance. It is a methodical review and objective examination of the financial statements, including the verification of specific information. Our work includes a review of internal controls, testing of selected transactions and communication with third parties. Based on our findings, we will issue a report indicating the financial statements are fairly stated and free of material misstatements.
A review consists of applying analytical procedures and making inquiries of persons responsible for financial, accounting, and operational matters. A review does not typically include tests of the underlying accounting records, and is significantly less in scope that an audit engagement. The objective of a review is to provide negative assurance that nothing has come to our attention during our procedures that caused us to believe that the financial statements were not presented in accordance with generally accepted accounting principles.
A compilation provides the lowest level of assurance. It is, presenting in the form of financial statements, information that is the representation of management without attempting to express any assurance on the statements.
Often a CPA is asked to express a written conclusion about the reliability of a written assertion that is the responsibility of another party. These services are referred to as attest engagements. This is a more focused engagement, dealing with specific assertions made in writing by management to be relied upon by a third party. For example, a report on the investment performance of a retirement portfolio for a company 401K plan, compliance with laws and regulations with regard to a grant program, or achievement of specified operating objectives. There are a wide range of attest services that we can perform providing various levels of assurance depending on the needs of the client.