Although the word “auditor” has “audit” within it, audits are not the only services that we provide. In fact, depending upon your needs and your organization’s regulatory requirements, an audit might be overkill.
So what are your other choices? First, you will need to decide if the users of your financial statements need the auditor to provide some assurance regarding their overall accuracy. Depending upon your answer, you will most likely choose from the following services:
If you would like to present your financial statements to your readers in the format of generally accepted accounting principles (GAAP) and with appropriate footnote disclosures, but you don’t necessarily require the auditor to express any opinion on their accuracy, you should consider a compilation with disclosures service. It’s an affordable way to have a distinguished, professional report to hand out.
By contrast, if you’re looking for the auditor to provide a limited opinion on the accuracy of your financial statements, consider a financial statement review. A review consists of analytical procedures (financial ratios and prior period comparisons), inquiries, and other procedures designed to obtain “limited assurance” that the financial statements are free from material misstatements. A financial statement review is not as thorough of an examination as an audit and will not provide the same level of assurance for the users of the financial statements. However, it might just be the service that’s needed for your organization.
Still confused about what type of service is best for your organization? Ask the staff at Fox & Company! We’re happy to answers your questions.