Which report should you use ?
An organization is now required to compile their annual financial statements based on their individual Public Interest (PI) score. Depending on this score either a compilation, independent review or an audit will be applicable. The business can elect to have a voluntary audit or independent review if this level of assurance is required for reporting to third parties. This will be stipulated in the relevant MOI.
Audit – Highest level of assurance
An audit provides the highest level of assurance. An audit is a methodical review and objective examination of financial records and statements, including the verification of specific information as determined by the auditor.
Our Audit Includes:
- Testing of selected transactions
- Confirmation with third parties
and based on those findings we issue an opinion as to whether the financial statements are fairly stated and free of material misstatements.
Our audits enable clients to:
- Help detect and take steps against fraud and error
- Facilitate the payment of all related taxes on time and accurately thereby avoiding unnecessary interest and penalties
Review – Limited Assurance
Less extensive than an audit but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the set of financial statements by making use of various inquiries of the company’s management team, we can determine if the financial statements or supporting documentation / information appear inconsistent or questionable resulting in the auditor to perform additional procedures.
Compilation – Lowest level of assurance
Compilations do not require inquiries of management nor a study and an evaluation of the company’s internal controls.
Instead, when we compile financial statements, we rely on our knowledge of accounting principles and our general understanding of your business and we present financial information that is a representation of management and express no opinion or assurance.
Not sure which report is right for your business? Or have questions regarding the above? Contact us
