Audits, Reviews and Compilations

 Audits, Reviews, and Compilations

Do you understand your business’s current financial situation? There are a variety of reasons why a company needs to take stock of its finances. Investors may require this information, or you may be trying to get a better understanding of your cashflow.

Regardless of your reasoning, Mauricio Midence takes your concerns seriously. We’ll do a thorough review of your books to help you get a clear picture of your business. We offer three different levels of examination: audits, reviews, and compilations. You can learn more about them below.

Audits

Audits are the more rigorous examination we offer. They’re designed to give clients a high-level of assurance as to the examination’s accuracy. To get this level of assurance, we need to do more than simply asking management for their financial information.

We do everything in our power to ensure informational accuracy, which means asking for the source documents that prove business transactions. This includes checks, invoices, expense reports, and so on. We’ll also retrieve third party confirmation. This means we contact your customers, suppliers, or other individuals who entered into a financial transaction with you. Then, we get them to confirm that they entered into the listed financial transaction(s) with you

When Mauricio Midence submits an audit, you can rest easy knowing that we’ve used our full discretion to get the correct information. This allows you to use the audit in most circumstances.

Reviews

Reviews are a less rigorous examination than audits, but they are sufficient in some situations. As with the audit, we’ll ask for financial information from the company’s management. Then, we’ll look for third party confirmation and source documentation that supports a business’s financial statement.

Reviews provide a limited level of assurance. They prove that the financial statement makes sense, and that the numbers we verified proved to be correct. However, we won’t be checking the numbers as thoroughly as we would in an audit.

Compilations

Compilations are the least rigorous of these three options. We won’t be verifying any of the information you present to us. Instead, our job here is to simply ensure that the information on your financial statements makes sense.

To ensure an accurate compilation, you will need to provide accurate information.

Do I Need an Audit, Review, or Compilation?

Sometimes, our clients wonder whether they need an audit, review, or compilation. Ultimately, we like doing a personal review of your situation to determine the best course of action. However, the varying levels of assurance give us a broad idea of which examination is appropriate for which type of situation.

Compilations are the least verified examination, so they are only suitable for smaller loans. Most business loans will require a review at the very least, and significant loans will require an audit.

If there’s a specific entity that you want to receive a loan from, you’ll be able to ask them what level of financial examination they require.

Looking for a Financial Examination in Pinole, California?

Mauricio Midence Tax Preparation Service is here for you. We offer a variety of accounting services, which are designed to give you power over your finances.

If you have any questions about our services, or if you’re ready to book an appointment, don’t hesitate to contact us online or call us at (510) 669-5659.
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