Accounting and Assurance

Managing a business can be like putting together a puzzle, all the pieces need to fit in order to be rewarded with the big picture. Financial statements report your business financial position as well as profitability. Stakeholders and creditors often need assurance that the financial statements accurately represent the true financial position of a company. Your stakeholders and creditors have different levels of risk tolerance, so we provide two levels of assurance to meet your needs.

Each type of financial statement report may suit specific circumstances, depending on requirements from your bank or other parties, as well as meet your budgetary needs.

Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one.

Please contact us if you have questions about which type of financial report is right for you.

Notice to Reader - No Assurance

In compiling financial statements for a client, we present information that is the "representation of management" and express no opionion 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. Compilations are generally used for tax purposes.

Review Engagement  - Limited Assurance

A review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company's management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.

A review doesn't require us to study and evaluate your company's internal controls or verify data with third parties or physically inspect assets. Rather, a review engagement report expresses limited assurance in the form of the statement. "We are not aware of any material misstatement" for the financial statement to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required note disclosures.

Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit. Banks often require review engagement report from an independent CPA as part of their lending covenants.