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Our staff is trained and skilled in many industries. We offer
auditing services that not only are effective, but we also provide
useful information on helping to make your organization more
effective.
The objective of an audit is the expression of an opinion about
whether your financial statements are fairly presented, in all
material aspects, in conformity with generally accepted accounting
principles. Audits are usually required only when a company has
investors or other related party that wants assurance that the
financial statements are correct.
If all issues are resolved with an audit then a report would be
issued that reads as follows:
To the Board of Directors
XYZ Company
Orlando, Florida
Dear_________________,
I have audited the accompanying balance sheet of XYZ Company
for the year ended December 31, 200X and the related
statements of income, retained earnings, and cash flows for the
period then ended. These financial statements are the
responsibility of XYZ Company’s management. My responsibility
is to express an opinion on these financial statements based on
my audit.
I conducted my audit in accordance with U.S. generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. I believe that my
audit provides a reasonable basis for our opinion.
In my opinion the financial statements referred to above present
fairly, in all material respects, the financial position of XYZ
Company as of December 31, 200X and the results of its
operations and its cash flows for the year then ended in
conformity with U.S. generally accepted accounting principles.
Sincerely,
Baldwin Accounting CPA, PA
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An audit involves procedures that will include tests of
documentary evidence supporting the transactions recorded in
the accounts, tests of the physical existence of inventories, and
direct confirmation of receivables and certain other assets and
liabilities by correspondence with selected customers, creditors, and banks.
The financial statements provided in an audit will include the following:
- An audit report with an opinion as to whether they conform with US Generally Accepted Accounting Principles.
- Balance Sheet
- Income Statement
- Statement of Cash Flows
- Notes to the financial statements
A review is merely a report that states that we did not find any
issues in the financial statements that would make us think they
were not in conformity with GAAP. A review is usually only
required if a related party requests this.
A review consists primarily of inquiries of company personnel and
analytical procedures applied to financial data. A review does not
contemplate obtaining an understanding of the internal control or
assessing control risk, tests of accounting records and responses
to inquiries by obtaining corroborating evidential matter, and
certain other procedures ordinarily performed during an audit.
Thus, a review does not provide assurance that we will become
aware of all significant matters that would be disclosed in an
audit. We would not perform an audit of such financial
statements, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole, and,
accordingly, we would not express such an opinion on them.
Our report on the financial statements would read as follows:
To the Board of Directors
XYZ Company
Orlando, Florida
Dear_________________,
We have reviewed the accompanying balance sheet of XYZ
Company as of December 31, 200X, and the related statements
of income, retained earnings, and cash flows for the XX months
then ended, in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute
of Certified Public Accountants. All information included in these
financial statements is the representation of the management of
XYZ Company.
A review consists principally of inquiries of company personnel
and analytical procedures applied to financial data. It is
subsequently less in scope than an audit in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material
modifications that should be made to the accompanying financial
statements in order for them to be in conformity with U.S. generally
accepted accounting principles.
Sincerely,
Baldwin Accounting CPA, PA
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The financial statements provided in a review will include the following:
- A review report with no opinion
- Balance Sheet
- Income Statement
- Statement of Cash Flows
- Notes to the financial statements
There are two types of compilation engagements available.
1. Compilations with disclosures include the following:
- A compilation report with no opinion
- Balance Sheet
- Income Statement
- Statement of Cash Flows
- Notes to the financial statements
2. Compilation without disclosures
- A compilation report with no opinion
- Balance Sheet
- Income Statement
- Statement of Cash Flows (optional)
If you need assistance with Audits, Reviews & Compilations please give us a call (407) 363-0890
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