An audited financial statement provides the highest assurance that there are no material errors in the statement. They are required by lenders, bonding companies and others. Audited financial statements guarantee confidence in the information provided. The audit of a financial statement requires that the auditor follow Generally Accepted Auditing Standards (GAAS). Kee, Huchok & Co. follows all GAAS during a financial statement audit.
A reviewed financial statement provides assurance as to the reliability of financial information. These are less costly than an audit and are often an acceptable alternative. The performance of a review engagement requires the use of analytical procedures to test the reliability of the statements.
A compilation is the presentation of financial statements without the assurance that they are in conformity with Generally Accepted Accounting Principles (GAAP). This option provides data in proper financial statement form without verification of the accuracy of the numbers. This is the most popular service and is acceptable to most clients.
An agreed-upon procedures engagement determines the accuracy of an item on a financial statement. Request an agreed-upon procedure if you require specific procedures applied to particular elements in your financial statement and do not need an opinion on the financial statement as a whole.