|Most small business owners and managers understand that certified public accountants (CPAs) can perform audit services and issue an audit report on a company's financial statements. However, some may not be aware that there are alternatives to the audit engagement. CPAs can provide two other levels of service for unaudited financial statements: compilations and reviews.|
The purpose of these engagements is to add credibility to and enhance the reliability of the company's financial statements. Quite often, regulatory bodies, non-management owners, banks that provide loans or other organizations that transact business with a company (such as suppliers that sell on credit or leasing companies) will request some level of involvement or participation by external CPAs in the financial reporting process. This information should help business owners and managers make more informed decisions regarding the level of involvement of external CPAs in the financial reporting process.
What level of service is your company looking for?