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. We serve clients in Raleigh, Cary, Durham, Apex, Wake Forest, Wilson, Garner, and all surrounding communities.
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.
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. Financial review services are important to make sure your business is following all the required regulations as well as working as efficiently as possible.
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.
Preparing Financial Statements
Preparing financial statements can be considered one of the foundations of financial accounting. When it comes to preparing financial statements for your business this can include working through the income statement, the balance sheet, statement of cash flows, and the statement of retained earnings. Our trained professionals will help you work through a variety of different financial statements and other financial reporting processes. There are also multiple different levels of financial statements when it comes to audits, reviews, and compilations.
The difficulty of preparing financial statements typically comes from the overall size and organization of the company. This will also vary depending on the type of business you own as well as the regulations in your location. This can be difficult to keep track of, but the professionals at Steward Ingram & Cooper PLLC will help your business through even the most difficult financial statements.