An audit is the highest level of assurance a CPA can provide. The purpose of an audit is to provide financial statement users with the CPA’s opinion on whether the financial statements are prepared in accordance with the proper financial reporting framework.

The auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, either by error or fraud.

When a compilation or review is not sufficient for a third party’s use, an audit of the financial statements is often the level of service an external CPA will report on. To obtain reasonable assurance, items are observed, tested, confirmed, compared or traced based on the auditor’s judgment of their materiality and risk. After gathering appropriate evidence through this process, the auditor issues an opinion about whether the financial statements are free from material misstatement.

As an additional benefit, the auditor may become aware of some deficiencies in internal control or weaknesses in the organization’s systems and offer suggestions for improvement.

For more information about our audit reporting on financial statements, please contact Don or Brent to set up a complimentary needs assessment. You may also submit a form through our contact us page.