Financial Reporting
Financial reports are formal records of the financial activity of your business. Their purpose is to provide information on the financial position and performance of the business and how these are changing over time. Financial reports reveal important information and are necessary for decision-making.
We produce three different types of financial reports. The type of reporting that is right for your business depends on whether we are required to verify the details of the information you provide, and to what extent this verification or assurance takes place.
There are two levels of assurance and one non-assurance which we can provide to meet your external financial reporting requirements:
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Audit Engagement
The first and highest level of assurance is an Audit Report. An audit requires a Licensed Public Accountant to perform tests of your internal controls in order to gain reasonable assurance that your internal control system is appropriate to safe guard company assets and properly report financial results. It also requires substantive tests over the amounts and values reported in the company's financial statements. An audit results in the rendering of a professional opinion that the company's financial statements have been prepared according to generally accepted accounting principles.
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Review Engagement
The second level of assurance is the issuance of a Review Engagement Report. This type of engagement requires the Licensed Public Accountant to determine that the financial information is plausible through the use of enquiry, discussion and analysis over the amounts reported in the financial statements.
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Compilation Engagement
When you do not require the higher level of assurance offered by an Audit or Review Engagement, then a Notice to Reader Report is probably what you need.
A Notice to Reader is for financial statements that have been compiled for internal and tax reporting purposes only. This would occur when outside users are not particular about the level of assurance over your financial statements. These financial statements cannot be relied upon by third parties and do not provide any assurance over the accuracy or completeness of the financial statements.
The level of assurance refers to the depth in which we review your financial information. The more in-depth and detailed the review, the higher the level of assurance we can provide. The assurance provided in audit or review engagements may be required for external reporting to banks, shareholders, government agencies or potential buyers of your business.
When your financial statements are prepared for compliance purposes only and there is no need for assurance, we prepare the financial statements under a Notice to Reader Report.
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