What is an Audit?
The highest assurance level our firm provides are audits. These objective, methodical examinations involve verification to enable us to express that your financial statements are wholly free from material misstatement. Additionally, an audit provides outside parties, such as lenders or investors, with the confidence that your financial information is fairly presented in accordance with generally accepted accounting principles (GAAP). Audits are often a requirement either to obtain high-value loans from banks or to purchase or sell a business.
Services rendered as part of an audit include:
- Confirmation of financial information through communication with outside parties, such as customers, banks, vendors, and attorneys.
- Examination of selected transactions.
- Observation and inspection of your inventory and physical asset reconciliation methods.
- Evaluation of your company’s internal control system.
An added benefit of gathering this evidence is an assessment of fraud risk, enabling Logan & Associates to identify and make recommendations to improve procedures and internal controls, strengthening your organization as a whole.
What is a Review?
If you are not required to have an audit performed but want additional security, reviews may be a cost-effective alternative. Logan & Associates can still provide limited assurance about the credibility of your statements through a review. Reviewed statements can be a strategic resource for understanding your company’s financial position and a clearer depiction of your business for outside parties.
In order to obtain a reasonable basis for assurance, Logan & Associates will design and perform analytical procedures and make inquiries of key members of your management team to conduct the review. Afterwards, our firm can provide a report to express limited assurance that we are not aware of any necessary material modifications to make your financial statements conform to GAAP.
Through this approach, evaluation of your company’s internal controls is not required. Data will not be tested through third parties and assets will not be physically inspected, as reviews consider only the plausibility of financial information as it appears in statements.
What is a Compilation?
By itself, a compilation is not an expression of assurance from our firm. Instead, Logan & Associates takes the time to gain a general understanding of your business, along with the accounting principles and reporting systems in place. This allows our firm to assist your management in the proper organization and presentation of relevant financial information.
Engagement is the first step in establishing a sound bookkeeping system. Banks also often require compilations from an independent CPA as a condition for granting loans.