Lenders, investors, bonding companies, government agencies and others often rely on qualified CPA’s to provide an independent opinion on the financial statements of a company or non-profit organization as a means of gaining assurance that the financial information meets accounting standards. This is done through a process called an audit.
In an audit CPA’s evaluate the organization’s accounting system and internal controls, gather and examine evidence that support the financial statements, make inquiries of management and outside parties, and analyze and test the financial data that management provides. The goal of this process is to reach a conclusion whether the financial statements are presented in accordance with generally accepted accounting principles. This conclusion is documented in the independent auditor’s report.
Profectus CPA provides auditing services for privately held companies, non-profit organization and governmental entities.
Profectus CPA also provides compilation and review services for many different types of organizations.
A compilation is an engagement in which we draft financial statements for your company or organization based on information that you provide. We do not audit or review the data nor provide any sort of assurance on it that may be relied upon by outside parties. Compilations are appropriate for smaller organizations that want or need formal financial statements for reporting to interested outside parties or internal users of financial information, such as a board of directors.
A review is an engagement in which we can provide limited assurance on the financial statements by performing inquiries and analysis on the statements. At the conclusion of a review engagement we issue a review report. A review engagement is appropriate where outside users, such as lenders or bonding companies, require a higher level of scrutiny and some assurance not provided in a compilation.
Whether it is an audit, review or compilation, financial statement reporting can enhance the value of your business particularly if you are borrowing money, looking for investors, working with bonding or you are trying to sell your business. CPA prepared financial statements allow you to provide better information to outside users, allowing them to better assess their risks, potentially leading to lower financing and bonding costs and a higher sales value for your business.