An Audit Review and Compilation Services is the highest form of assurance for businesses, allowing them to gain lender credibility, prepare for sale or merger, and have a clear financial picture of their organization.
It’s imperative that audits are handled with the utmost accuracy due to the significant amount of trust they generate. Fortunately, our company provides three distinct assurance services: auditing, reviewing, and compilations. Depending on your needs and requirements, you can select the service level that best fits your needs.
1. Audit –
An audit is the highest form of assurance for businesses, allowing them to gain lender credibility, prepare for sale or merger, and have a clear financial picture of their organization. It’s imperative that audits are handled
2. Review –
A review is a less purpose behind a financial review, conducted by an independent auditor, is to determine if the nonprofit’s financial statements are in line with the standards of generally accepted accounting principles. Although there are shared goals between a review and an audit, a review typically requires less intensive investigation and analysis than an audit.
3. Compilation –
A compilation is an engagement where the CPA present information that is representation of management without expressing assurance. A compilation is the least comprehensive of the three procedures, and is generally used when the organization is not required to have its financial statements audited or reviewed.
The purpose of this blog is to provide a general overview of the three procedures and to highlight the key differences between them.
4. The benefits of using audit review and compilation services?
There are many benefits of audit review and compilation services some of these are –
. Determine adequacy of internal controls.
. Promote best practices for controls.
. Ensure compliance with policies and regulations.
. Identify operational inefficiencies and waste.
. Review IT projects, systems, and technology.
. Provide objective insight.
. Assess efficient and responsible use of resources
Compilation is a professional service provided by a Certified Public Accountant (CPA). The compilation is based on financial statements prepared by your company and, unlike a review or audit, provides no assurance to anyone relying on the report. During compilation procedures, the CPA does not perform tests or examine internal controls – it consists of simply summarizing financial data provided by the company.