Audit Review and Compilation

Attest function or auditing is a sophisticated process developed by the accounting profession for the examination of financial statements by CPAs. An audit includes examining on a test basis, evidence supporting amounts and disclosures in financial statements. It also includes assessing the accounting principles used and significant estimates made by  the management  as well as evaluating the overall financial statement presentation. In conducting an audit, CPAs are required to obtain reasonable assurance about whether the financial statements are free of material errors and irregularities. An audit offers investors and creditors reasonable assurance that the statements present a company's financial position, results of operations, and cash flows in conformity with  generally accepted accounting principles.

Audits are by no means just for large, publicly held companies. The financial statements of many small and closely held companies are audited regularly. Independent audits increase the credibility of financial statements and are usually required when applying for bank loans and lines of credit.

In addition to audits, we also offer reviews and compilations. In performing reviews, we apply analytical procedures to a company's financial statements and make certain inquiries of management. Review procedures, which are substantially less comprehensive than those performed in an audit, enable CPAs to express limited assurance on conformity of the financial statements with generally accepted accounting principles. In compilation engagements, we put financial information supplied by clients into the form of financial statements, but do not express any assurance on the statements.