Bridge CPA professionals have diverse and deep experience in helping companies of all sizes meet their financial reporting requirements. Whether it be for lenders, other investors, or because it is a great business practice to have a qualified CPA perform procedures over a company’s financial results, Bridge CPA professionals have been assisting owners and management teams meet their financial reporting requirements for many years. Our practical and cost-effective approach has resulted in large multi-national companies as well as locally focused companies trusting Bridge CPA professionals to serve as their auditor. Bridge CPA offers three types of Assurance Services:
Audit Review, and Compilation
Audit
Highest level of assurance that a CPA can provide. Involves comprehensive and detailed testing in accordance with AICPA professional standards to determine whether the company’s financial statements are fairly presented. The objective of an Audit is to obtain “reasonable assurance” that the financial statements are free from material misstatement, whether due to fraud or error. The auditor performs procedures to gather evidence including:
- Planning: Interview management, staff, and other key personnel to gain an understanding of the company’s operations, internal control systems, and potential risks.
- Analytical Procedures: Analyzes financial data, ratios, and trends to identify any unusual or unexpected fluctuations or patterns that may indicate errors or fraud.
- Substantive Testing: Selecting and detail testing a sample of transactions and account balances to verify their accuracy and completeness.
- Financial Reporting and Disclosures: Evaluate whether all required financial statement disclosures have been in accordance with standards and whether or not the financial statements are fairly presented.
At the conclusion of their work, the CPA issues an Audit report expressing an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the Generally Accepted Accounting Principles.
Review
Review provides a lower level of assurance compared to an audit. It involves performing limited procedures to assess whether the financial statements are plausible and free from obvious material misstatements. Unlike an Audit, a Review does not involve obtaining a high level of assurance or performing extensive testing. Instead, the focus is on performing analytical procedures and making inquiries of management. The main procedures performed in a Review include:
- Analytical Procedures: Compare financial data from different periods, investigate significant fluctuations or relationships, and assesses the reasonableness of the financial statements.
- Inquiries: Obtains an understanding of the company’s operations and financial transactions by making inquiries of management and other relevant personnel.
At the completion of the Review, the CPA issues a report expressing limited assurance whether the auditor is aware of any material modifications that should be made to the financial statements. A Review is not as comprehensive as an Audit and does not provide the same level of assurance.
Compilation
Compilation is the most basic level of service provided by a CPA. It involves assembling, organizing, and presenting financial information provided by management and presenting it in the form of financial statements. Unlike an Audit or Review, a Compilation does not provide any level of assurance or express an opinion on the financial statements’ accuracy or compliance with GAAP. The CPA may also assist in preparing notes or disclosures that accompany the financial statements.
A Compilation does not involve performing any testing or verification of the financial information. Therefore, it should not be considered as a substitute for an Audit or Review when a higher level of assurance is required.
It’s important to consider the specific needs and requirements of your stakeholders when deciding which type of service to pursue. If external parties, such as lenders or investors, require a high level of assurance, an Audit may be necessary. However, if limited assurance is sufficient or if cost is a concern, a Review or Compilation may be more appropriate. Call the professionals at Bridge CPA who can help you decide which is the best fit for your company.
Our Tech – Efficient and Secure Technology
No matter which Assurance service is best for your company your work will be performed using our paperless technology, including cloud-based auditing, review, and compilation software. To the extent possible, we collaborate with clients to obtain information with a minimum of document printing and copying.
Utilizing a secure platform – Suralink, which functions as an interactive PBC (prepared by client) list. Suralink will help both the auditor and client track the status of requested audit documents. The Assurance team can work onsite or remotely.