Accounting and Attest Services
A compilation is a type of service where an accountant uses the records kept by the business to produce a financial statement which is in a form in accordance with the applicable accounting standards. A compiled statement is often sufficient for a small business to understand its finances as well as to use for banking purposes. In a compilation the accountant does not formally attest to the correctness of the business's bookkeeping itself. Compilations can be prepared with or without notes
A review engagement is a type of service where an accountant produces a statement in accordance with applicable accounting standards but provides a little more assurance to the user that the underlying records are correct. In a review engagement, the accountant analyzes the financial statements with analytical review procedures as well as inquiry of the client. Many larger small businesses and construction businesses needing bonding often need to have reviews. A reviewed financial statement comes with complete notes disclosing all things material to the financial statement.
An audit is a more complete attest service. In an audit, the accountant undertakes procedures to verify internal controls and often performs various tests of accounting systems and verifies important facts with third parties. For example, in an audit the accountant verifies cash balances with the bank, receivables with customers, and loan balances with the lender. An audit is the most involved type of accounting service. It provides assurance to the end user that the financial statements materially reflect the financial situation of the company being audited. Often, public entities such as governments and non-profit organizations, as well as larger businesses, particularly those which have outside investors uninvolved in the management of the business, or businesses with large capital needs often have audits performed. Our firm is capable of doing the highly rigorous Single Audits required of entities which receive significant federal money.
Agreed Upon Procedures
An agreed upon procedure is any collection of specific procedures that a company or third party may wish to be done. Often agreed upon procedures are done to help a third party asses a specific part of a business activity that they feel unsure about.