Audit, Review and Compilation

Mildrid Esua, CPA is Large Enough To Be Experts, Small enough to really care

Audit, Review, Compilation & Preparation

Many small business owners are not familiar with the various level of assurance offered by a certified public accounting firm and the differences between each.
They mistakenly combine all assurance services (audit, compilation and review) under the term audit. The truth is that, depending on the situation, an audit is not always required. There are three levels of assurance a company may need – audit, compilation or review.
These three services offer different level of assurance including time, cost and reporting. In most cases, a company’s situation will determine which assurance service is most appropriate (bank loans, vendor applications or internal planning).
To help our clients, prospects and others understand the difference between audits, reviews and compilations, Mildrid Esua, CPA, PLLC has provided key details about each below

Auditing

A well-executed audit can be used to identify ideas to help improve decision making, reduce waste, tighten controls, improve efficiencies and spot trouble before it occurs. Audits act as a communication tool, providing clear, consistent and credible information to banks, regulatory agencies and potential investors

Financial Statement Review

Our CPAs,’s approach to performing a review is similar, but CPA’s add analytical procedures that examine relationships among the data to identify any unexpected differences or anomalies.

CPA’s then make inquiries to determine the reasons for those findings, so CPA can note that we found nothing that would indicate the statements are not in conformity with GAAP.

Assurance of Regulatory Requirement Compliance

Compiled Financial Statements

In compiling the information needed to prepare a financial statement, CPAs follow appropriate professional standards and point out any lack of conformity with generally accepted accounting principles (GAAP)

If you need help with bookkeeping or creating your general ledger to provide a basis for our compilation, we’d be pleased to assist with that, too.

No opinion is expressed about the underlying financial information.

Agreed-upon procedures

When you need information about specific financial matters for a loan application, business sale, estimate of cash balances or other purpose, you’ll find a CPA’s, agreed-upon procedures engagement a cost-effective way to get it.

We provide specialized financial reporting on businesses of all types and sizes for banks, franchisors and other clients

As a full-service business advisor to our clients, we offer a wide spectrum of related services to help with our clients’

AICPA Government Audit Quality Center

As a member of the Government Audit Quality Center (GAQC), Mildrid Esua, CPA has access to a comprehensive resource for GAO Yellow Book audits, including Single Audits for not-for-profit organizations

CPA & Advisor receive up-to-date information on issues pertinent to not-for-profit organizations undergoing engagements performed under OMB Circular A-133. Recent updates included tools to evaluate cost allocation for functional expenses, and procedures related to the Schedule of Expenditures of Federal Awards.

Sooner or later as a company grows it will become necessary to have audit, review or compilation performed. Whether it’s for internal planning, obtaining a loan from a bank or many others reasons these assurance services are important. If you have questions about audits, review or compilations, Mildrid Esua CPA, PLLC can help. For additional information please call us at 336-825-7994. We look forward to speaking with you soon.