Audits:

Audited Financial Statements may be mandatory for companies of a particular size or those with specific debt/equity funding requirements. This represents the most comprehensive type of attestation service offered by accountants in the United States. Audited financial statements involve an exhaustive examination of a company's financial records, internal controls, and other relevant information to ensure compliance with accounting standards and legal requirements. This level of scrutiny provides stakeholders, including investors, lenders, and regulators, with a high level of confidence in the accuracy and reliability of the company's financial information. Audits are particularly vital for larger companies or those seeking significant financing or investment, where stakeholders require a thorough and independent assessment of the company's financial position.

Review:

Reviewed Financial Statements, although less exhaustive than audits, offer stakeholders a level of assurance regarding the accuracy of a company's financial information. Often required for small businesses seeking financing through bonds, specific insurance policies, or government contracts, these reviews also cater to cooperative boards assessing financial health and viability. Despite not being as comprehensive as audits, reviews incorporate analytical procedures and inquiries that provide a reasonable basis for expressing limited assurance on financial statements.

Compilation:

Compiled Financial Statements, on the other hand, lack third-party verification and involve limited testing. They primarily consist of professionally prepared financials.

At AD Tax & Accounting Inc, we offer all three types of engagements and serve clients in all 50 US states, including audit clients that are subsidiaries of larger firms. For inquiries or a quote, please contact us at [email protected], specifying your industry type and approximate company size.