PROVIDES THE HIGHTEST LEVEL OF ASSURANCE

Intended to provide creditors, investors and other outside parties with a high level of comfort on the accuracy of financial statements. We issue a formal report that expresses an opinion on whether the financial statements are presented fairly, in all material aspects, in accordance with the applicable financial reporting framework. Typically appropriate and often required when seeking high levels of financing or outside investors, or when selling a business.

An audit is a methodical review and objective examination of the financial statements following auditing standards established by the AICPA . Based on our audit work and conclusions we issue a report on whether the financial statements are fairly stated and free of material misstatements in accordance with the appropriate accounting basis such as US GAAP or IFRS.

An Audit includes evaluation of internal controls, risk assessment, examination of documentation, confirmation of transactions and balances with third parties, confirmation of pending or threatened litigation, evaluation of going concern issues, evaluation of related party transactions, evaluation of possible contingencies, evaluation of subsequent events, and analytical procedures, among other activities.

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.

Some financial institutions require audits of nonpublic companies based on the financing amount and/or the bank’s assessment of the company’s risk. Also, some tax authorities may require the audit of financial statements if the company reaches certain levels of profit.

PROVIDES LIMITED ASSURANCE

It is intended to provide lenders and other outside parties with a basic level of assurance on the accuracy of financial statements. Typically appropriate as a business grows and is seeking larger and more complex levels of financing and credit. CPA issues review report.

This type of engagement is less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures, and various inquiries we make of your company’s management team.

A review doesn’t require us to perform risk assessment procedures and evaluate your company’s internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: “We are not aware of any material modifications” for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other 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.

PROVIDES THE LOWEST LEVEL OF ASSURANCE

Intended for use by lenders and other outside parties who may appreciate the business’s association with a CPA without requiring a level of assurance on the accuracy of financial statements. Typically appropriate when initial or lower amounts of financing or credit are sought or significant collateral is in place. CPA issues compilation report.

Banks often require compilations from an independent CPA as part of their lending covenants.

We do not obtain any assurance for a compilation because it is not required to verify the accuracy or completeness of the information provided or otherwise gather evidence for the purposes of expressing an audit opinion or a review conclusion.

The compilation report states that the we did not audit or review the financial statements and accordingly does not express an opinion, a conclusion or provide any assurance on them.

Compliance audits are normally required by regulators. There are different types of compliance audits. Each jurisdiction including local, state, or federal have different compliance requirements. These may include among other, regulations imposed by agencies such as HUD, FDIC, CFPB, Federal Department of Education, NAIC, FHA.

Other local regulators also require special compliance reports such as OCIF , COSSEC. and OCS.

These audits are performed in accordance to the regulators rules and other general rules such as Single Audit Circulars, HUD audit guide, Yellow Book, etc.

If you have need for an specific compliance audit give us a call to help you in the process.

SPECIAL REPORTS NO ASSURANCE

An agreed-upon procedures engagement is a service in which a CPA is to report findings based on specific procedures agreed upon beforehand. The procedures are agreed upon in advance and can encompass a wide variety of topics.

The procedures are determined by your organization and may be as limited or as extensive as desired but should not include procedures that are open to varying interpretations. One of the benefits of engaging a CPA to perform such work is that the findings are independently derived with no bias. There is flexibility in the nature, timing, and extent of the AUP and the work can be tailormade to fit your needs. You know your organization and can direct a CPA to perform procedures in a certain area—perhaps an area of concern, a new activity, or just a closer look at something. It is also important to note that in an AUP engagement, the CPA does not provide an opinion or a conclusion. Instead, the CPA provides a report listing the findings resulting from the procedures that are agreed-upon.

Intended for business owner’s use to manage the business (similar to what an in-house controller or CFO would provide for management in a larger company). May fulfill some lenders’ documentation requirements for small loans. No formal report issued on the financial statements. You can share your financial statements with outside parties but on each page, we will include a notice that “no assurance is provided” on the financial statements.

Because we will prepare your financial statements directly from the records you provide, we will not verify the accuracy or completeness of the information and is not required to issue a formal report on the financial statements.