Financial Audit, Review and Compilation
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The best indicator of an organization’s financial health are its records. Accurate financial statements play a vital role in securing credit, preparing for the company’s sale or, laying the groundwork for a successful merger. Our firm offers three levels of financial evaluation to suit your company’s individual needs.
Auditing Financial Statements
A complete audit provides the highest degree of assurance for an organization. During an audit, CPAs assess financial records, verify their accuracy, and offer an assurance that the records follow generally accepted accounting principles. Audit services are recommended before making any major financial move such as a sale or purchase of another company.
Reviewing Financial Statements
A full review of financial statements includes an analysis of the records and a statement that they have not been materially misrepresented. A financial review from a CPA firm is often sufficient to secure a loan or obtain a grant.
Compilation of Financial Statements
If your business has recently undergone changes to its structure or personnel, compilation services to put records in order and prepare them.
Frequently Asked Questions.
An audit provides the highest level of assurance and involves independent verification of your financial statements. A review offers limited assurance through analytical procedures and inquiry, without the same depth of testing. A compilation simply presents your financial data in a proper format, with no assurance attached. Lenders and investors typically specify which one they require.
Usually because a bank, investor, bonding company, or grantor requires it as a condition of financing, a loan covenant, or a contract. Some nonprofits and government contractors are also required to have annual audits or reviews regardless of size.
A review generally takes a few weeks depending on how organized your records are; a full audit takes longer since it involves more extensive testing and documentation. We give you a realistic timeline upfront once we understand the scope.
Organized financial statements, bank and loan statements, prior-year tax returns, and supporting documentation for major transactions. The cleaner your bookkeeping going in, the faster and less disruptive the engagement is — which is one reason many audit clients also use us for bookkeeping.
Sometimes, but not always — it depends on what the lender specifically asks for in writing. We recommend confirming the exact requirement with your bank or lender before the engagement starts, so you don’t pay for a higher level of service than necessary, or discover too late that you needed one.