What is a compilation, review, or audit?
A compilation, review or audit is accounting jargon for the level of assurance you receive based on the work we do. In simple terms…
- Compilation (Notice to Reader) – provides no assurance your financials are accurate
- Review – provides moderate assurance your financials are accurate
- Audit – provides the most assurance your financials are accurate
Unless told otherwise, the majority of small business owners require a compilation.
What is our approach?
o Compilation
We view each of our clients as an extension of our own busiess. Therefore, we treat the work we do for you the same as if we were doing it for ourselves. The standard we’ve set is simple; improve your bottom line AND do make sure it’s done right.
The end result of a compliation engagement is typically to produce year end financial statements and a tax return. Standard procedures are followed to help ensure your financial statements are presented without error, however, no level of assurance is provide like in a review or audit engagement. While ownership of accurately presenting the financial statements for a compilation engagement is your responsibility, we understand that it’s difficult to be aware of current reporting and tax standards. Therefore, we take the time necessary to prevent you from exposure to future liabilities from errors found in the financial statements.
o Review
Our approach to a review engagement is based on professional standards the accounting industry is requried to follow. The end result of a review engagement is produce a report, which will indicate in our opinion whether or not the financial statements contain sigificant errors. Since we provide some level of assurance your financial statements are without error, we use professional judgement and due care to ensure an accurate opinion is expressed. Our reputation and stakeholder’s value is important.
In most cases a review engagement will be required by a lendor, shareholder, or potential purchaser.
o Audit
Our approach to audits is simple; focus our efforts on the areas in the financial statements that are at the greatest risk of misstatement. By focusing auditing procedures on areas of greatest risk, the whole process becomes far more efficient. This allows us to save time and provide maximum value. In essence, you get the most bang for your buck.
The result of an audit engagement is to produce a report that indicates in our opinion whether or not we believe the financial statements are a true representation of the underlying business activities.
The aim of an audit engagement is to work with you to add value for the readers of your financial statements. We want your readers to rest assured the information being provided is accurate and reliable.