Once we evaluate with you the objective of your financial statements and your fiscal goals we will recommend an audit, review, or compilation.
Generally, a compilation engagement is only suitable for internal use by management or for limited use, such as income tax.
Although no assurance is provided by the accountant to the user of the financial information, a CPA will not be associated with financial information he or she knows, or has reason to believe, is misleading or incorrect.
We may recommend a compilation if:
A company will generally secure an accountant to prepare a review of financial information to provide some assurance to creditors, potential lenders, potential business purchasers, and/or minority or inactive shareholders that the financial statements are worthy of belief.
We may recommend a review if there are no requirements for an audit and:
The audit is comprised of an examination of the accounting records and other data supporting the financial statements. The auditor will compile the evidence required to verify whether the financial statements render an acceptable representation of the company's financial position and its activities during the period being audited. The auditor's report will include a professional opinion on the financial statements.
Small, closely held companies will generally only have an audit if there is a requirement from a third party, such as a securities commission, or if the shareholders are unable to agree that an audit should be waived. More often, such private companies can rely on the lower level of assurance provided by a review, rather than an audit.