The terms “assurance” and “audit” are sometimes used loosely to define any review of your financial statements by an independent CPA firm.
There are various levels of service which we provide. Which one you need is based on the type of organization you are, your government requirements and your banking relationship. Sassetti does much more than examine financials and independently attest to the proper reporting of results. Our team is comprised of experienced professionals who have developed a business perspective to identify opportunities, recognize problems and formulate solutions. Our professionals examine the larger picture and help stakeholders assess the financial and operational needs of their businesses.
Audits are generally the highest form of assurance provided. We provide audit services to many types of entities, often in response to requests from banks for loans, regulatory bodies that require audit filings and internally, to provide a company or organization’s board of directors and management vital information for decision making. Audits can be over the full financial statements, or individual statement, like a balance sheet only audit.
In a review, the CPA applies analytical procedures to a company’s financial statements and makes inquiries of management in order to issue an accountant’s review report on the company’s financial statements. An accountant’s review report is far less in scope than an audit and may be used by a variety of third parties, including banks, creditors or regulatory agencies.
COMPILATIONS & PREPARATIONS
In a compilation engagement, the CPA assembles financial statements and provides a compilation report using the client’s data but does not provide assurance on the financial statements. A preparation engagement is similar to a compilation, but we, as the accountant, do not issue a report on the information prepared.
An agreed-upon procedures engagement is one in which a practitioner is engaged by a client to issue a report on procedures and findings based on specific procedures performed related to a financial statement component or other written assertion provided by the client. Agreed-upon procedures are often requested by regulatory agencies, including various taxing authorities, as in the case of public service commissions or granting agencies. We also perform agreed-upon procedures required by the SEC, including Surprise Examination for investment advisors.