CEOs, bankers, creditors, and bonding companies typically require assurance that a company’s financial statements accurately represent the true financial position. Since business owners and lenders have different levels of risk tolerance, we offer three levels of assurance:
An audit provides the highest level of assurance on a company’s financial statements. It is an objective examination of evidence, on a test basis, supporting the amounts and disclosures in the financial statements, conducted in accordance with auditing standards generally accepted in the United States of America. It provides reasonable assurance that the company’s financial statements are fairly presented and free of material misstatement.
An audit can be useful in many ways for your business, including:
- Satisfying investors and stakeholders (e.g., employees, customers and suppliers) as to the credibility of the company’s financial position
- Complying with banking covenants and conditions
- Facilitating the purchase or sale of a business
- Reasonable assurance for absentee ownership (i.e., investment firms or individuals who no longer run the business)
A review provides limited assurance on a company’s financial statements. Inquiries and analytical procedures are applied so that our CPA firm can express limited assurance that no material modifications to the financial statements are necessary and that they are in conformity with GAAP. Reviews offer the advantages of our CPA technical expertise without the work and expense of an audit.
Compilations present information that is the representation of management and express no opinion or assurance on the statements. Compilations do not require inquiries of management or analytical procedures, so there is no assurance on a company’s financial statements.
Smith Dickson offers accounting services that help with clients specific business planning and management needs, such as:
- Cash flow forecasts/projections
- Personal financial statements
- Attestation (agreed upon procedures)
If you would like to learn more about any of our Accounting services, contact Smith Dickson today.