An accountant can be asked to provide varying levels of assurance based on factors such as leading requirements, board and donor expectations, the size of your company or organization and perceived marketing value from investing in varying levels of assurance.
Below is an overview of three different kinds of services a firm such as CBM can provide. We have decades of experience not only conducting audits, reviews and compilations but also working with your organization to help you decide which is the best match for your current needs.
Financial statement audit
A financial statement audit represents the highest level of assurance an auditor can provide. The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statement presents fairly, in all material respects, in accordance with audit generally accepted auditing standards. An audit includes understanding the entity and its environment, including the entity’s internal control, obtaining sufficient audit evidence and forming an opinion on the financial statements.
Financial statement review
A review is a more limited form of assurance than an audit. Because the review’s work is less extensive however, the accountant is also less likely to focus on internal controls or transaction sampling. With a review engagement, the objective is to report whether the accountant is aware of any material modifications to the financial statements. A review offers organizational stakeholders a limited form of assurance without the financial investment required for an audit.
Financial statement compilation
A compilation offers no assurance from the accountant and, subsequently, is the least expensive. The accountant conducts no analysis or inquiries that might allow him/her to render an opinion on the conformity of the financial statements with GAAP. The compilation service is essentially intended to get the assistance of an accountant in the fair presentation of the organization’s financial statements.
Please contact us now to find out how we can assist with your financial statement audit, compilation or review.