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Audits- Reviews – Compilations

As a business owner in Florida, you might be having stakeholders, private investors and creditors who very often want an assurance that the financial statements necessarily represent the accurate financial position of your business. This is owing to the fact that they have different levels of risk tolerance. It is exactly at this point of time when we provide three levels of assurance for effectively meeting all your needs as a business owner in Florida.

Audit – Provides the highest level of assurance

An audit basically is the highest level of assurance. It is actually a methodical review and a complete inspection of the financial statements including the verification of some specific information which is as formed by general practice or as determined by the auditor. We at Accounting Advantage USA perform a complete review of internal controls, test of some selected transactions along with communication with the third parties. Then our team issues a complete report, based on our findings which assures that the financial statements are completely fair and free from any kind of material misstatements.

How an audit helps?

  • An audit plays a vital role in keeping the stakeholders, private investors and creditors along with the entire investing community satisfied with the credibility of the published audit report
  • Facilitation of payment of goods & services tax, corporate taxes and other taxes on time that too accurately which in turn helps in avoidance of the penalties, interests etc.
  • Effectively complying with the banking covenants
  • Helping in the detection and deterring of material fraud as well as errors
  • Proper facilitation of both purchase and sale of business

Review – Provides limited assurance

Reviews are lesser extensive as compared to an audit but it is more involved than a compilation. A review is basically an engagement that consists of analytical procedures which our team at Accounting Advantage USA applies to the financial statements and various other inquiries that is made to the management team of your business. Now, after the analysis, if the financial statements or the supporting information is not consistent or questionable, we perform other additional procedures.

How the review helps?

The review does not require studying or evaluating the internal controls of your business. It also does not require verification of data with the third parties or the physical inspection of the assets. A review report puts forward limited assurance in the form of the financial statement. The reviewed financial statements by the team of Accounting Advantage USA necessarily includes all the needed footnotes as well as other important disclosures.

Compilation – Provides the lowest level of assurance

Compilation in this regard provides the business owners of Florida with the lowest level of assurance. At the time of compilation of the financial statements by the team of Accounting Advantage USA, the presented information represents the management and puts forward no opinion or assurance of the financial statements. Compilations do not require any kinds of inquiries of the team of management or any other analytical procedures. In this regard, we at Accounting Advantage USA completely rely on our knowledge of accounting principles and a general understanding of your overall business in Florida. The banks very often need compilations from an independent CPA as a part of their lending covenants which is exactly the situation where we at Accounting Advantage USA comes to the rescue of the business owners in Florida.

Which report should be used?

Now, there arises a confusion as to which should be the ideal report to be used. It is quite crucial to understand that each report of the financial statement that is, the audits, reviews and compilations are suitable for specific circumstances. This, in turn, depends on the requirements of the banks or other parties associated with your business along with meeting the budgetary needs of the business. The business owners should have a detailed idea about the strengths as well as weaknesses of each of the report and select the one that is best suited.

So, for any kinds of help in this regard, do contact us today and let the team of Accounting Advantage USA help you.