Not all entities require a full audit. Privately held companies can choose one of these more cost-effective services, depending on the requirements of their lenders.
- Analytical procedures and inquiries provide a reasonable basis for obtaining limited assurance that there are no material modifications that should be made to the financial statement
- A review does not obtain an understanding of the entity’s internal controls, assess fraud risk, test accounting records or other procedures normally performed in an audit.
- A report is issued stating the review was performed in accordance with Statements on Standards for Accounting and Review Services; that management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework and for the designing, implementing and maintaining internal controls relevant to the preparation.
- The most basic level of service provided with respect to financial statements. A compilation does not perform inquiry, analytical procedures or other procedures normally performed in a review.
- A report is issued stating the compilation was performed in accordance with Statements on Standards for Accounting and Review Services; and that the CPA has not audited or reviewed the financial statements and accordingly does not express an opinion or provide any assurance about whether the financial statements are in accordance with the applicable financial reporting framework.
Agreed Upon Procedures (AUP)
In an AUP engagement, the client engages Piver & Anderson to issue a report of findings based on specific procedures performed on a subject. This report is unique to each situation.