I have prepared financial statements on a notice to reader, review, and audit basis for a variety of organizations, including owner managed, sole-proprietors, partnerships, not-for-profits, churches, school boards, and charities.
I have helped a variety companies in different industries, including oilfield, insurance, nanotechnology, healthcare, home construction, manufacturing, TV production, wholesale and retail sales, as well as several non-for-profit organizations, school boards and charities.
Most owner-managed companies need financial statements prepared on a compilation, or notice-to-reader basis, to show the results for the year, and for tax purposes.
This basis is prepares solely from information provided by management and provides no assurance as to the underlying financial information. The presentation does not comply with Generally Accepted Accounting Principals.
This is the lowest cost option.
Financial Statements prepared on a Review basis provide limited assurance that the financial statements are not materially misstated. Work is limited to inquiry, without audit, and states that the accountant has not seen anything that would cause them to believe that the financial statements are not materially in accordance with Generally Accepted Accounting Principles.
Reviewed financial statements are common larger owner managed corporations that have significant bank debt, and for not-for-profit organizations that do not require an audit.
Reviewed financial statements cost more than those done on a Notice to Reader basis, but less than an audit
Audited Financial Statements are, in the auditors opinion, comply with Generally Accepted Accounting Principals. Internal controls will be documented, and may be tested. The underlying financial information will be tested on a sample basis with original documentation, and some amounts and balances will be confirmed with third parties.
Audited financial statements are common only for the largest owner managed business with significant reporting requirements, and some not-for-profit organizations.
Audits cost significantly more than notice-to-readers and reviews.
At the current time I am not accepting new audit clients.
Chris Kaye Professional Corporation
Chartered Professional Accountant