Looking to get more value out of the assurance services provided by your CPA? At Machen McChesney, we use the audit, review or compilation process as an opportunity to find ways to improve your business. Our team actively looks for ways to save you both time and money.
Getting the most out of your assurance services starts with choosing the right level of service. Which level of service do you need or require?
In a compilation engagement, the CPA assists the client with presenting financial information in the form of financial statements. In a compilation, a CPA does not examine documentary evidence, perform inquiry or analytical procedures, test underlying financial records, or perform any fraud risk assessment. Accordingly, the CPA firm does not express an opinion nor provide any assurance regarding the financial statements.
A review of a financial statement is more costly and time-consuming than a compilation because the CPA will perform analytical procedures and make inquiries of company personnel to provide limited assurance that there are no material errors with the financial statement presentation. This scope is substantially less than an audit and does not involve obtaining an understanding of the company's internal controls or assessing fraud risk.
The highest and most costly level of independent financial reporting is the audit. An audit is performed to objectively present the financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The audit is planned and performed to obtain reasonable assurance that the financial statements are free from material misstatement. During the audit, auditors will examine on a sample basis internal supporting documents and other accounting records that support amounts recorded in the financial statements. Auditors will also make inquiries of selected company personnel as well as confirm certain assets and liabilities by correspondence with selected independent customers, vendors and creditors.
Our audit process emphasizes maximum efficiency, and our approach is structured so that our team will work with you throughout the year to minimize year-end interruptions. As we work through the audit process, our senior leadership will continue to be involved in communications with you to ensure efficient use of your time and provide timely feedback regarding ideas for improvement.
Outside of the traditional assurance services described above, the Machen McChesney team is available to assist with agreed-upon procedures (AUP) engagements. An AUP is a limited scope engagement to perform specific procedures, report findings and enhance the credibility of information. These procedures are usually applied to historical financial information but can be applied to prospective or even nonfinancial information. This is a cost-effective way to verify accuracy of certain financial statement account balances and/or compliance with internal accounting procedures without issuing an audit opinion.
Have questions about which level of audit and assurance services are the right fit for your organization? Our CPA firm proudly serves, Auburn, Opelika, Montgomery and the rest of Alabama and surrounding states. Fill out our contact form below or call us anytime at 334-887-7022 and one of our professionals will be glad to help. Together, we can Return Value to your organization.