Audit, Review and Compilation Services
Stockholders, creditors, private investors and management all require financial statements that accurately present the financial position and results of operations of the organization. Independent Certified Public Accountants at Daniel R. Davidson, CPA provide three levels of service to meet such needs.
Certified Audit of the Financial Statements - Highest Level of Assurance
Only Certified Public Accountants can render an opinion as to whether your financial statements are fairly presented in accordance with generally accepted accounting principles. An audit provides the highest level of assurance that the financial statements are free of material misstatement. Among the important audit procedures are reviewing and documenting internal controls, substantiating selected transactions, and assessing the risk of fraud in the organization. Based on an auditor's findings, a report will be issued on whether the financial statements are fairly stated and free of material misstatements in accordance with generally accepted accounting principles.
Review of the Financial Statements - Limited Level of Assurance
A review of an organization involves procedures that are substantially less in scope than an certified audit. CPA's review engagement procedures consist primarily of making inquiries of management and other key personnel and applying analytical procedures to the financial statements. Based on the information provided, other procedures may be required.
Compilation - Lowest Level of Assurance
A compilation of financial statements is limited to presenting in the form of financial statements information that is the "representation of management." CPA's do not express an opinion or any other level of assurance on the financial statements.
Each level of service has specific uses, primarily depending on the requirements of the readers of the financial statements. Understanding the unique attributes of each allows the organization to more appropriately plan and budget for the financial statement requirement.
As members of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants, Daniel R. Davidson, CPA subjects itself to peer review of its professional practice.