How to Conduct an Audit, Review and Compilation

At our firm, we offer three distinct services – Audit, Review, and Compilation – that provide varying levels of assurance for users of financial statements. Our services can be tailored to meet your specific needs.

Audit Review and Compilation Additionally, we offer attestation services on items outside the scope of financial statements. Let us know how we can best serve you?

1. The purpose of an audit?

The purpose of an audit is to express an opinion on the financial statements of an organization. An audit is conducted by an independent body, such as a government agency or a licensed accountant, in order to ensure that the financial statements are free from material misstatement.

Audits are important because they provide assurance to investors, creditors, and other stakeholders that the financial statements are accurate. This helps to promote confidence in the organization and can result in lower costs of borrowing. Additionally, audits can help to prevent fraud and improve the accuracy of financial reporting.

2. When to get an audit, review, or compilation?

The three main types of financial statement services performed by CPAs are audits, reviews, and compilations. Each type of service has a different purpose and level of assurance.

general guide on when you might need each type of service:

-If you are a publicly traded company, you will most likely need an audit.
-If you are a privately held company with outside investors, you may need a review or audit.
-If you are a privately held company with no outside investors, you may only need a compilation.

Keep in mind that this is only a general guide. Your specific situation may differ, so it’s always best to speak with a CPA to get tailored advice.

3. Key differences between an audit, review, and compilation?

The key differences between an audit, review, and compilation are:

– An audit provides the highest level of assurance, a review provides a limited level of assurance, and a compilation provides no assurance.
– An audit is conducted by an independent auditor who expresses an opinion on the financial statements, a review is conducted by a CPA who performs procedures to obtain limited assurance, and a compilation.

As a small business owner, it’s important to understand the different types of financial statements that can be prepared by your CPA firm. The three most common types of financial statement services are an audit, a review, and a compilation.

While all three services require your CPA firm to gather and analyze your financial information, there are key differences between each service. Here’s a quick overview of the key differences between an audit, review, and compilation:

An audit is the most comprehensive type of financial statement service. An audit involves your CPA firm performing procedures to obtain evidence to support the fair presentation of your financial statements.

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