When CPAs prepare or assist in preparing financial statements, they are required under professional standards to issue a report on those financial statements. This report can be one of three types: audit, review or compilation.
The type of report is determined by a mutual agreement between the client and CPA, and it usually depends on many factors, such as the needs of the client, needs of creditors or funding sources, and the size and complexity of the organization. Regardless of the level of service performed by the CPA, the financial statements are the primary responsibility of the reporting entity.
How We Deliver
The Nichols Accounting Group, PC’s financial statement services comprise all three levels of assurance depending on your company’s needs. We’ll work with your team to determine the type of financial statement that is required to meet your objectives. Our promise is timely delivery and quality reporting.
- Audits offer the highest level of assurance to third parties, and include in-depth examination and confirmation of account balances, inventories, and selected transactions. We perform audits for you to remove errors, ascertaining the validity and reliability of your information.
- Reviews provide limited assurance to outside interests and involve inquiries and analytical procedures that confirm financial statement matters and identify any items requiring further analysis. We perform reviews to ensure the integrity of your data.
- Compilations are usually requested for internal purposes and are based upon information provided by a company’s management. They do not offer assurance but may involve some adjustment to accounting records.
How You’ll Benefit
- Information that will help you make better financial decisions
- Obtaining a loan is easier when the lender has confidence in your financial documentation and preparedness
- Obtaining Contracts requires that the owner have an understanding and clear representation of their interim financial picture.
- Compliance requirements sometimes dictate the type of financial statement you must obtain. You can depend on our timely and accurate delivery.