Audit

Often required when applying for a loan, bank and other creditors require an entity to go through an audit or a review. An audit is the highest level of assurance an independent CPA can provide. During an audit an independent CPA gets a better understanding of how the business operates it’s day to day activities and internal control procedures. During an audit CPAs also make sure the business is in conformity with Generally Accepted Accounting Principles(GAAP)

A review provides limited assurance; however, it still provides more insurance than a compilation. During a review CPAs check for material misstatements and make sure the business is in conformity with GAAP.

A compilation provides no assurance. During a compilation the CPA assists in the preparation of a businesses financial statements.