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
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