![]() ![]() ReviewsĪ review must be performed in accordance with Statements on Standards for Accounting and Review Services (SSARSs). ![]() Some of these procedures include, but are not limited to, confirmation of bank and debt balances, confirmation of a sample of accounts receivable balances with customers, review and verification of bank reconciliations, searches for unrecorded outstanding checks and liabilities, review of compliance with debt covenants, verification of the existence of inventory and a review of its valuation, gaining an understanding of the internal control environment, reviewing board minutes and obtaining certain representations from management and the company’s attorney.īased on the level of work performed and the reporting standards required an audit costs substantially more than a review or compilation. In order to express an opinion, the auditor must perform several procedures required by generally accepted auditing standards (GAAS) to gain reasonable, but not absolute, assurance that the financial statements are free from material misstatement, whether caused by error or fraud. A financial statement audit provides the users with an independent auditor opinion confirming whether the financial statements present fairly the entity’s financial statements and footnotes. Audits must be performed by an independent CPA. AuditsĪuditing services are the highest level of independent CPA attest services offered. Additionally, members of the AICPA must follow the AICPA Professional Standards, which include the AICPA Code of Conduct and peer review requirements. For all the attest services, CPAs are subject to licensing and other requirements including passing the CPA exam, completing required education, experience and continued professional education. In general, you should seek the reporting standard necessary to meet the needs of bankers, owners, investors and management.īelow we will compare the alternative levels of service available. In these cases, the level of services varies greatly depending on the purpose of the service request. Conversely, management may request a qualified accountant to simply compile the company’s financial information in a format meeting generally accepted accounting principles (GAAP). For instance, a lender may require an independent audit of a company’s financial statements in order to satisfy them that the financial statements are free from material misstatement. The consideration of the level of services should first address the purpose of the services to be delivered. ![]() An informed understanding of each of the three varying levels of services an independent CPA can provide will allow you to determine which is appropriate for your specific needs. ![]() These services range from a basic compilation to a much more involved full scope audit. In that respect it is different than a tax return which is issued without any such attest report. “Attestation services” are those services whereby the CPA “attests” to the fairness of the financial information presented and signs a report that summarizes the findings. MaChoosing the appropriate attestation engagement for your organizationĬPAs can perform a variety of attestation services for clients. ![]()
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