CRI’s team will begin with an understanding of your business plus its processes and internal controls that are used to develop your financial statements. We will then use that understanding to develop a program for testing through inquiry, analytics, and detailed substantive verification procedures (e.g. vouching and tracing items to details and back-up). The goal of the audit is to determine—with a high level of reasonable assurance—if the financial statements are free of material misstatement and fairly stated in light of the applicable framework. An audit report is the highest level of assurance to any party, including third-parties.
CRI’s team analytically reviews financial information and makes inquiries of your organization’s management team — in an effort to determine whether material modifications should be made to the financial statements in order for them to conform generally accepted accounting principles. A review engagement does not entail detailed verification and testing or gathering an understanding of your internal controls, but it does provide limited, negative assurance to third-parties such as insurance companies and financial institutions.
A compilation is the most basic attestation service provided by CRI or any CPA firm (i.e. it’s our most basic form of report). Our team compiles the business’ books and records but does not perform any verification (not even inquiry or analytics) of the financial data. It may be used internally and is also acceptable to some lenders and third-parties.
Financial Statement Preparation
Financial statement preparation is our most basic level of service. Our team does not perform any verification of the financial data, and we pull the numbers together in your chosen format. The financial statements will be marked with “no assurance is provided.” While you may share the financials with third-parties, the financial statement preparation service is really aimed at meeting management’s internal needs.