An audit provides the highest level of assurance. An audit is a review and objective examination of the financial statements, including the verification of specific information. All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies, and other organizations receiving government grants.
Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.
An audit allows you to satisfy stakeholders as to the credibility of published information, facilitate the payment of corporate tax, goods and services tax, help deter and detect material fraud and error, and facilitate the purchase and sale of businesses.
In compiling financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the statements. Compilations don’t require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Each type of financial statement report may suit specific circumstances, depending on your individual requirements, as well as meet budgetary needs.
Understanding each report’s unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.