An audit is the highest level of assurance service performed by a CPA. An audit involves the auditor gaining an understanding of your business’s internal controls. The auditor will also assess the risk of fraud in your organization, before using this information to design the procedures performed during the audit. Audit procedures are designed to gather information to support your financial statements through various procedures. The end result of the engagement is a report expressing an opinion on your financial statements and whether they are fairly presented or not. In addition, we are required to report certain deficiencies in your system of internal controls that we become aware of. Typically a letter is also drafted to convey any issues or opportunities of improvement we may find, that are not required to be reported under the applicable auditing standards. The auditor is also required to be independent in respect to your business, in order to avoid any situations that would influence the auditor’s opinion.
A review is a step down from an audit in the level of assurance provided, in that a review is intended to provide limited assurance that the financial statements are presented fairly. The CPA is still required to be independent in relation to your business. Review procedures require the CPA to obtain an understanding of your business and your business’s accounting policies. The work performed in a review is much less in scope than for an audit, and involves various procedures to look for misstatements in the financial statements. It does not require the CPA to obtain an understanding of your business’s internal controls, or assess the risk of fraud. The end result is an issued report that states whether or not the CPA is aware of any material modifications that should be made to the financial statements for them to be presented in accordance with the financial reporting framework presented.
Agreed Upon Procedures
A CPA can also perform an Agreed Upon Procedures Engagement (AUP). These engagements are designed to report on specific areas or transactions for your business. In an AUP engagement, specific procedures are designed to meet the specific goals of the engagement. The CPA will perform those procedures and issue a report that discusses the procedures performed and the results, or findings of those procedures. The CPA is required to be independent in an AUP engagement.
Our fourth level of service offered is a compilation. The CPA does not need to be independent to your business in a compilation engagement, as no level of assurance is expressed on the financial statements. In a compilation engagement, the CPA would prepare the financial statements from client records and is only required to read the final statements to see if they appear free from any obvious material misstatements. The report issued in a compilation states that the CPA has not audited or reviewed the financial statements and expresses no opinion on the statements presented.Our goal is to not only provide you with the highest level of customer service but also a final report that provides value to you and your company.
Risk Based ApproachOur teams use a risk based approach which allows us to gain a better understanding of your company, the controls in place and the industry in which you operate in. We are also able to devote more of our time and resources to the more critical areas of your company. We operate in a paperless environment and use the latest technology and software to assist us in providing you a quality assurance product. Our teams provide open communication with you throughout the entire process from planning to final product presentation so you are kept up-to-date and there are no surprises upon final product presentation. Our teams can work with any industry, however we specialize in the following:
- Community-Based Residential Facilities
- Employee Benefit Plans
- Construction and Trade Industries
- Local Governments