What you need, delivered.
With our expertise and careful consideration of your particular situation, your financial statements will be exactly what you need, when you need them.
Which report is right for you?
The type of report you need will depend on many factors, such as: your specific needs, your bonding companies and/or creditors or investors’ specific requirements, your banking requirements, and the size of your company. If your company is publicly-held, it will require audited financial statements by law. Privately-held companies may also be held to this requirement through credit agreements with lenders. When this specific requirement is not present, privately-held companies may choose reviewed or compiled statements more frequently.
If you are the owner of a privately-held company that does not require a higher level of assurance, a compilation report may be right for you. In this type of report, the CPA must comply with certain basic requirements of professional standards, (having background knowledge of the industry and its accounting practices, and ensuring there have been no obvious departures from generally accepted accounting principles), while providing all the basic services with respect to financial statements. In some cases, it is necessary to work with you in laying the groundwork for the report – such as creating your general ledger – before proceeding with the report itself. The end result of a compilation is a report on the financial statements, which states that the report was performed in accordance with AICPA professional standards, with “no assurance” expressed.
If your business has bank loans, outside investors, or trade creditors - but those third parties do not require audited statements – then a review report may be right for you. This type of report provides everything that a compilation report does, with the addition of inquiry and analytical procedures, which are carried out by the CPA. The end result of a review is a report on the financial statements, which states that the report has been performed in accordance with AICPA professional standards, with “limited assurance.”
The most comprehensive and intensive level of assurance services are used in an audit report. Verification and substantiation procedures are added to all of the above services for compilations and reviews when an audit report is conducted. Some examples of the details covered in this type of report could be contact with creditors or debtors to verify details of amounts owed, and careful inspection of inventory, contracts, and associated documents. The end result of an audit is a report that states an audit was performed in accordance with generally accepted auditing standards, with "positive assurance."
We’re here to help you decide which report is right for you, and to deliver that report according to your specific needs. Contact Sirchia CPA today to get started.