We acknowledge our responsibility to the public - clients, lenders, investors and others - who rely on the quality, objectivity and integrity of our work. We evaluate your business requirements and goals to determine which level of service is appropriate.
Audit - Review - Compilation
Whether you choose audit, review, or compilation services, the professionals at Francis G Marchese & Company CPAs PLLC will be responsive, knowledgeable, innovative and committed to your business or organization.
Audit - Highest Level of Assurance
An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general practice.
Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.
An Audit allows you to...
Audits are not just for public entities. Our firm specializes in Not-for-Profit organizations, including Churches, Volunteer Fire Companies, and various community organizations. Your organization may be required to have an annual audit based on the bylaws, state compliance, or because the organization is receiving government grants.
Review - Limited Assurance
Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company's management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review doesn't require us to study and evaluate your company's internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.
Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit.
Compilation - Lowest Level of Assurance
In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
Which Report Should You Use?
Each type of financial statement report may suit specific circumstances, depending on requirements from your company's bank or other parties, as well as the budgetary needs.
Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Please contact us if you have questions about which type of report is right for you.
