Audits - Reviews - Compilations

Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company.

Your stockholders, creditors, or private investors have different levels of risk tolerance, so we provide three levels of assurance to meet your needs.

 

Audit - Highest Level of Assurance

An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general practice.

Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.

An Audit allows you to...

  • Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information.
     
  • Facilitate the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations.
     
  • Comply with banking covenants.
     
  • Help deter and detect material fraud and error.
     
  • Facilitate the purchase and sale of businesses.
     

Here's what you get...

You get the highest level of assurance because we go outside your company to obtain more information. Typically, we'll have written communication with:

  • Your customers, to check outstanding receivable balances,
  • Your banks, to confirm cash or debt balances and terms,
  • Your vendors, to verify outstanding payable balances, and
  • Your attorneys, for information on pending or threatened legal action.

We also perform physical inspections by observing your inventory counting methods and perform test counts. We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client's supporting work papers.

Audits Not Just for Public Entities

All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies and other organizations receiving government grants.

Moreover, some financial institutions require audits of nonpublic companies based on the financing amount and/or the bank's assessment of the company's risk. Also, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits as checks of their management teams.

 

Review - Limited Assurance

Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company's management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.

A review doesn't require us to study and evaluate your company's internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.

Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit.

 

Compilation - Lowest Level of Assurance

In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.

Banks often require compilations from an independent CPA as part of their lending covenants.

Which Report Should You Use?

Each type of financial statement report may suit specific circumstances, depending on requirements from your client's bank or other parties, as well as meet budgetary needs.

Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.

Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you or complete the form below for a consultation.

Name
Phone
Email
Best Time To Call
Comments
CAPTCHA Image

[ Show a different Image ]

Recent Posts

Testimonials

  • "Great! Got back more than anticipated. Very happy with the professionalism and the handling of a problem with the IRS."

    -John R.

  • "I had never used an accountant and was interviewing so I could choose one if I decided to do so. During the interview I asked advice about two new financial matters as they relate to me in retirement. The meeting was excellent. Mr. Ross was professional, knoweldgeable and non-threatening all at the same time. "

    -Joseph C.

  • "Glen was terrific. After having a poor experience elsewhere, Ross & Company were like a breath of fresh air."

    -Len E.

  • "I provided all of the appropriate paperwork (electronically), and Glen Ross went through them, set me up in his system and asked a few questions. I also had some additional questions regarding 2013 taxes which he also promptly answered, while also giving the basis for the answers."

    -Piers B.

  • "First, the experience was excellent. I called and made an appointment to see a CPA. The receptionist was warm and professional. Ease of getting an appointment, especially during the current tax season, was excellent. When I arrived at the office, I was met by the receptionist who was again, very nice and professional. "

    -Brett M.

  • "I met with Glen in the Fall to have him look over my last return prepared elsewhere to see if he saw any mistakes that I might be alerted to by the IRS again in the future. He listened to my concerns (which were many) and he re-assured me that I really had nothing to worry about, (believe me, that is NO SMALL TASK!). "

    -Tracey H.

  • "We were in the market for a new accountant because our previous accountant of 20 years retired. We were concerned it would not be easy to find an accountant that we would feel comfortable with. But after searching, we came upon Ross & Company who had great reviews. . "

    -AnnMarie F.

  • "Receptionist was super friendly and professional. Asked our concerns and scheduled an appointment before the end of the year. Mr. Ross was exceptional in answering our tax questions at an intimate personal meeting. "

    -Lisa Z.

  • "Fortunately and unfortunately my taxes have gotten to the point where I simply cannot handle them on my own (using TurboTax) anymore. This became evident when I received a communication from the IRS that there was a potential issue with a past tax return. "

    -Matthew D.

  • "Finally! A cure for Tax-time stress! Glen Ross met with us for about 1 hour and prepared our 2011 taxes while giving us important information about Federal Tax Law. Meeting Glen for the first time was great and sat down with him for an hour or so while he did our taxes."

    -R.T.





© Ross & Company CPA, PLLC 2019, 5 Florence Ave,
Smithtown, NY 11787

T: (631) 979-3141
F: (631) 979-3996 E: info@rosscompanycpa.com






© Ross & Company CPA, PLLC 2019, 159 E Shipyard Rd.,
Mt. Pleasant, SC 29464

T: (631) 979-3141
F: (631) 979-3996 E: info@rosscompanycpa.com

Links: Admin Login Search Site Map Privacy Policy Disclaimer











Get In Touch

Client Portal Login






Forgot password?

Subscribe to our Newsletter