A certified public accounting firm can provide various levels of service when it comes to the preparation of a client’s financial statements.
Our firm provides audit services under generally accepted auditing standards as well as review and compilation services under Statements on Standards for Accounting and Review Services promulgated by the American Institute of Certified Public Accountants and its Review Services Committee.
Raleigh Auditing Services
An audit is the highest level of financial statement service, and will be the most expensive for the client. In most cases, a third party will request that the client have an audit of their financial statements. As part of the audit, we look at internal controls, communicate with third parties, and test selected transactions. The purpose of an audit is to provide an opinion about whether the financial statements are presented fairly in all material respects in accordance with generally accepted accounting principles.
Another type of audit service we provide is limited scope audits of ERISA retirement plans.
A review provides limited assurance on the financial statements. It is less in scope than an audit, but more involved than a compilation. It consists of applying analytical procedures to the financial statements and making inquiries of management regarding a client’s financial statements.
A compilation is the lowest level of financial statement service. There is no assurance provided in a compilation. The financial statements are compiled based on management’s representations in a format appropriate for the circumstances. In a compilation, the client may choose to have a complete set of footnotes or omit substantially all footnote disclosures.