Whether you need an audit of your financial statements or just an agreed-upon procedures report outside the scope of an audit, our firm can provide you with the services needed. Delaney & Associates, LLC., offers a number of audit and assurance services, including the following:
Usually, an audit is performed because outside third parties (e.g., banks, creditors, and/or outside investors) require an auditor's opinion on financial statements. The objective of an audit is to express an opinion about whether the financial statements are fairly presented, in all material respects, in conformity with Generally Accepted Accounting Principles (GAAP), or some other financial reporting framework. An audit is conducted in accordance with Generally Accepted Auditing Standards (GAAS), and includes tests of accounting records and other procedures considered necessary to express such an opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. This evidence is obtained through inquiry, physical inspection, observation, third party confirmation, examination, analytical procedures, and other steps. An audit also includes assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
The purpose of a review is to obtain limited assurance that there are no material modifications that should be made to the financial statements. Reviews are usually performed because outside third parties or investors are looking for some comfort that the financial statements are not materially misstated, but do not require audited financial statements. Reviews are conducted in accordance with Statements on Standards for Accounting and Review Services (SSARS) issued by the AICPA and consist, primarily, of inquiries of company personnel and analytical procedures applied to financial data. A review is significantly less in scope than an audit and only provides limited assurance that there are no material modifications that should be made to the financial statements.
A compilation is usually performed when a higher level of service on the financial statements is not required by outside third parties or investors. Compilations must comply with SSARS and require the accountant to have an understanding of the client's industry, obtain knowledge about the client, read the financial statements, and consider whether such financial statements appear appropriate in form and free from obvious material errors. In a compilation, the accountant assists management in presenting financial information in the form of financial statements without providing any assurance that there are no material modifications that should be made. A compilation is limited to presenting, in the form of financial statements, information that is the representation of management.
Agreed-Upon Procedures Services-
Agreed-upon procedures engagements are normally performed when your organization has a reporting need outside the scope of an audit, review, or compilation. An agreed-upon procedures engagement is usually performed when specified parties can agree upon the procedures needed to meet their needs, and those parties do not require the expression of an opinion or any other form of assurance on the subject matter or financial statements.