Financial Statement Services
Which service is best for your business?
An independent external audit provides assurance to your business by providing an opinion on management-prepared financial statements and communicating the results to third party users. An auditor objectively obtains and evaluates financial information regarding assertions about economic actions and events.
An audit may be useful to third-parties who have a vested interest in the financial performance of your business and would like an enhanced level of confidence in the financial statements.
A review is significant less in scope than an audit. In a review, we establish an understanding of a business’ organization, operating characteristics, types of transactions, assets, liabilities, compensation, and related parties. We obtain evidence for significant items in management-prepared financial statements through inquiry and analytical procedures. A review provides limited assurance to users of the financial statements that the accountant is not aware of any reporting problems.
A review may be useful to bankers, vendors, and other third parties who are familiar with your business, and would like some assurance from an external CPA for decision-making purposes.
A compilation presents information, represented by management or owners, in the form of financial statements without the external accountant performing any procedures to assure the financial information is not materially misstated. In a compilation, we establish a general knowledge of your industry, the nature of your accounting records, and the form and content of the financial statements.
A compilation may be useful for businesses who do not have the in-house experience to prepare financial statements or for bankers, vendors, and other third parties who feel more comfortable with statements prepared by a CPA.
Financial Statement Preparation
A new addition to the accounting and reporting services available in 2015 is Preparation of Financial Statements. This new service was developed to enable clients to engage us to prepare financial statements when a compilation, review or audit was not needed. There are certain requirements to consider when engaging SJA for this service, so please contact us for further information.
SJA conducts all accounting and reporting engagements in accordance with professional standards and in compliance with the AICPA’s Code of Professional Conduct, including the ethical principles of integrity, professional competence and due professional care.