Audit, Review, and Compilation
When you need more than just compliance.
From time to time, almost every organization — including privately held and nonprofit entities — has to report how the business is doing financially. This information helps investors and creditors evaluate the business and allows owners to make informed management decisions.
Sometimes businesses think they need an audit, but another type of engagement would better suit their needs. Below are the predominant types of assurance and attest engagements KraftCPAs provides; if you’re unsure what service you require, we can help you decide objectively based on your needs and business situation.
KraftCPAs has conducted assurance services for both public and private U.S. companies, U.S. subsidiaries of foreign owned companies, U.S. companies operating abroad, and a wide variety of nonprofit organizations, governmental agencies, and employee benefit plans. Our wide range of experience makes us well versed in the intricacies of international reporting standards, as well as GAAP.
The accounting profession has three distinct financial statement services — all provided by KraftCPAs.
Value-Added Audit
An audit provides the highest level of assurance on a company’s financial statements. In an audit, the CPA examines financial statements by conferring with outside parties, completing physical inspections and observations, and testing selected transactions by examining support documents. While not designed to detect fraud, an audit provides assurance that the “financial statements are free of material misstatement and are fairly presented,” An effective audit should add value by providing practical suggestions to strengthen internal controls, improve operational efficiency, and enhance systems and procedures.
Review
A review provides limited assurance that no material changes are needed to the financial statements and includes primarily applying analytical procedures to a company’s financial data and making inquiries of their management. It is useful to management and others who want a high-level analysis to ensure the finances make sense.
Compilation
In lieu of an audit or a review, some external entities simply require the submission of financial statements that have been prepared by an external CPA. That’s where a compilation comes into play. In a compilation, which can be with or without disclosures, the CPA takes the numbers provided by the client and puts them in financial statement format. Because there is no analysis, the CPA is not allowed to render an opinion. This service can be done annually, quarterly, or monthly.
Agreed Upon Procedures
Sometimes a client will need a CPA to attest to subject matter other than that included in the company’s financial statements. Typically, there is another third party involved who wants a professional, independent party (the CPA) to perform procedures that will enhance the credibility of the information provided by the client. For instance, an acquiring company may ask for certain information (in addition to financial statements) from the company it is considering buying.
Other Consulting Engagements
KraftCPAs provides a wide range of consulting services in the areas of assurance, compliance, and security.
- Internal Audit
- IT Audit
- Information Systems Risk Assurance and Security
- Sarbanes Oxley (SOX) Compliance
- System and Organization Control (SOC) Examination
Quality
KraftCPAs adheres to the highest standards of technical accuracy, proficiency and ethical practice in the profession. To verify our compliance with those standards, KraftCPAs submits to an external peer review every three years and consistently receives an unmodified opinion – the most favorable result possible. Our most recent peer review was conducted in 2023 and is available to review here.
KraftCPAs shares the Hiscall values of integrity and commitment to customer service. They keep us ahead of the game and always prove to have our best interest at heart.”
Gary Luffman, Hiscall, Inc.