Audits, Reviews and Notice to Readers
The purpose of financial statements is to provide information about the financial position and results of operating activities of the business over a period of time.
Financial statements are an important tool for helping management make financial decisions for improving profitability.
We prepare three financial statement reports and the type of report your business requires will be driven by how much assurance we are required to provide on your financial statements.
We prepare two levels of assurance reports and one non-assurance report on your financial statements depending on your financial reporting needs. The level of assurance refers to the depth in which we review your financial information. The more in-depth and detailed the review, the higher the level of assurance we can provide. The assurance provided in an audit or review engagement may be required for external reporting to banks, shareholders, government agencies or potential buyers of your business.
- Audit Report
An Audit Report provides the highest level of assurance. We gain an understanding of your business and internal controls used to safe guard assets and we perform tests of your internal controls in order to gain reasonable assurance that your controls are functioning properly. We also perform substantive tests of the amounts reported in the financial statements. When we issue an Audit Report we are giving reasonable assurance that the company’s financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP). An Audit Report is often required for bank or statutory requirements.
- Review Engagement Report
A Review Engagement Report provides a second level of assurance. A Review Engagement is performed to determine the plausibility of the financial statements through use of enquiry, discussion and analysis over the amounts reported in the financial statements. A Review Engagement Report is commonly required for bank or statutory requirements.
- Notice to Reader
A Notice to Reader is a non-assurance report and is usually issued for internal and tax reporting purposes only. This would occur when management or third parties do not require any level of assurance over your financial statements. We do not perform any tests of your internal controls or accounts and we do not perform other procedures to verify your financial statements. We only compile financial statements based on information you provide.