Audit Review Compilation
At Accounting Offices of Milton Brown, we provide comprehensive audit services designed to deliver the highest level of financial assurance. Our audits involve a systematic and objective examination of your financial statements, including verification of key information. By utilizing industry best practices, we ensure accuracy, transparency, and compliance.
What is an Audit?
An audit is a thorough review and independent evaluation of financial statements. It includes analyzing internal controls, testing selected transactions, and collaborating with third parties to validate data. Based on our findings, we issue a report confirming whether your financial statements are fairly presented and free of material misstatements.
Benefits of an Audit
An audit offers more than compliance—it provides confidence and clarity for your stakeholders. Key advantages include:
- Building Credibility: Assures stakeholders, including investors, employees, customers, and suppliers, of the reliability of financial information.
- Tax Compliance: Ensures accurate and timely tax filings, minimizing risks of penalties, interest, or investigations.
- Meeting Requirements: Helps satisfy banking covenants and regulatory mandates.
- Fraud Prevention: Identifies material errors or fraudulent activities.
- Business Transactions: Facilitates mergers, acquisitions, and other transactions by ensuring transparency.
Our Audit Process
We provide unparalleled assurance by gathering information from both internal and external sources. This includes:
- Communicating with customers, banks, vendors, and attorneys to verify key balances and pending issues.
- Conducting physical inspections, such as inventory counts and test validations.
- Evaluating operating cycles, including sales, cash receipts, expenses, and payroll.
- Documenting detailed audit work programs and client-provided supporting materials.
Who Needs an Audit?
Other Assurance Services
Review Engagements
A review offers limited assurance, focusing on analytical procedures and management inquiries. While less extensive than an audit, it provides insights without requiring internal control evaluations or third-party confirmations. A review report states, “We are not aware of any material modifications,” and adheres to Generally Accepted Accounting Principles (GAAP).
Why Choose a Review?
- Provides CPA expertise without the comprehensive scope of an audit.
- Includes financial statement footnotes and disclosures.
- Balances assurance needs with budgetary considerations.
Compilation Engagements
A compilation offers the lowest level of assurance. It involves presenting financial data provided by management without expressing an opinion or assurance. Although less detailed, it meets specific lender or regulatory requirements.
Why Choose a Compilation?
- Ideal for businesses seeking basic financial statement preparation.
- Often requested by banks as part of lending covenants.
Choosing the Right Service
- Understanding your organization’s needs and stakeholder requirements is key to selecting the appropriate level of assurance. At Accounting Offices of Milton Brown, we’re here to guide you in choosing the best option—whether it’s an audit, review, or compilation—to meet your goals and build confidence in your financial reporting.
Contact us today to learn more about how we can help!
