
Audits, Reviews, Compilations
Conducting audits, reviews, and compilations are essential financial assurance services provided by accounting firms to assess and report on the accuracy and reliability of a company’s financial statements. An audit involves an extensive examination of the financial records, internal controls, and accounting practices to express an independent opinion on the fairness and completeness of the financial statements. It provides the highest level of assurance and is typically required for publicly traded companies and larger organizations. A review, on the other hand, is a limited-scope evaluation that involves analytical procedures and inquiries to assess if the financial statements appear plausible and are free from material misstatements. It offers a moderate level of assurance and is often requested by stakeholders such as banks or investors. A compilation involves organizing and presenting financial data into financial statements without expressing any opinion on their accuracy or completeness. It is the most basic level of service and is commonly used for internal reporting purposes. Each of these services serves a different purpose and provides varying degrees of confidence in the financial information presented, catering to the specific needs of the clients and stakeholders involved.