Regardless of the industry that your corporation belongs to, or the size of your organization, it is absolutely imperative that all of your stakeholders, both internal and external, can put their faith into the financial information you present.
An audit or a review might be required when:
This is the highest level of assurance on Assurance Services of a business. The objective of an Audit Engagement is to enable independent public accountants to render an opinion on the fairness of the client’s Assurance Services. This opinion is given in the form of a standard written report which normally consists of three paragraphs:
The Objective of a review engagement is to prepare and review Assurance Services to ascertain whether they are plausible, that is, worthy of belief. If, after reviewing the Assurance Services, the accountants are satisfied that the Assurance Services are not misleading, an accountant’s standard report will preface the Assurance Services.
This is the most basic accounting service in which a compilation engagement simply compiles unaudited financial information into reports or statements. It is suitable for many small businesses where shareholders are quite involved in the daily operations and therefore, a detailed review is not necessary. These are usually acceptable for the internal use of the company’s management. They do not enable professional accountant to provide any assurance on the reliability of the compiled information. For these types of engagements, the accountants attach a "Notice To Reader" that states that no review was performed on the information and that the information may not be appropriate for use by the reader.
At Vijay Sastry Kotamarti, CPA we can go through your needs and advise whether you need a review or an audit. Give us a call today for a consultation.