How Reports From a Certified Public Accountant Differ
There are different kinds of accountant reports that are going to do different things for the client. Joyce CPA, LLC, a certified public accountant in Cutler Bay, can provide you with a better understanding of what these differences are so that you can better understand which one it is that you need. Whether it is an internal audit, a review, or a compilation, having this knowledge about the different types of reports will allow you to be a better and more informed client and will make the process of working with your certified public accountant that much smoother. If you are interested in learning more about our services and what we do, contact us at Joyce CPA, LLC today.
What Can a Certified Public Accountant Do for You?
There are three types of reports that a certified public accountant can provide. Your CPA is very knowledgeable and well-trained but they will not be able to answer everything if you do not have everything in order. That is why it is so important to make sure that you understand what it is that you need so that you can work with them more easily.
- An Audit: Audits are the highest level of financial statement services that a CPA can provide you. Their purpose is to give you an understanding or an opinion about whether or not your financial statements were prepared in accordance with proper financial reporting framework. Audits enhance the degrees of confidence that those who use them–lenders and investors, for instance, place in the financial statements. The auditor takes the time to see if the statements are free from misstatement and, if there are misstatements, whether they were from error or fraud.
- A Review: Reviews are meant to be conducted to provide limited assurance that there were no material modifications made to the financial statements in order for them to conform within the reporting framework. This differs from an audit because it provides much less assurance to the reader of the statements. This is because the CPA does not do any actual audit procedures.
- A Compilation: With this report, the CPA is not providing an opinion or providing any assurance regarding the financial statements. Instead, the whole point of the compilation is merely to assist management in presenting that financial information through the statements without making sure that there were any modifications to the statements to conform to the reporting framework.
Do You Need an Internal Audit, Review, or Compilation?
As certified public accountants, we know the value that an internal audit or even a review or compilation can have for a business. We do not want any business to have to miss out on this valuable resource. That is why we want to encourage business owners to know the difference between the reports so that they can be better prepared to request the one that they need. If you are interested in learning more about the differences, contact us at Joyce CPA, LLC.
Joyce CPA, LLC is a certified public accountant located in Cutler Bay, Florida. We understand what it takes to provide you with quality service. If you are interested in learning more about what we can do for you, contact us today.