Audits - Reviews - Compilations

Stockholders, creditors, and private investors often need assurance that a company's financial statements accurately represent the true financial position. To provide that assurance, Cook Martin Poulson provides complete audit and financial review services. Our services are tailored to meet your needs and the needs of your stakeholders, whether they need a simple financial review or a complete audit.

Cook Martin Poulson offers three basic levels of assurance to meet your needs:

Audit – Highest level of assurance

An audit is a methodical review and objective examination of the financial statements, including the verification of specific information, as determined by the auditor or as established by general practice. Click here for more details.

Review - Limited Assurance

A Review is a less extensive analysis of the financial statements and your company's management team. While not as formal, nor as thorough as a full audit, it can still provide a good verification of financial accuracy. Click here for more details.

Compilation - Lowest Level of Assurance

A Compilation is a simple preparation of standard financial statements, using business-provided data and following standard accounting principles. A compilation does not include any analysis or verification. Click here for more details.

Which Report Should You Use?

The circumstances of each request determine which type of financial statement report is needed. And the needs may change, based on the requirements of the report audience and the business budget. Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you or complete the form below for a Free Consultation.

Audit - Highest Level of Assurance

A complete audit is the best way to verify the financial status of any entity. When Cook Martin Poulson performs an audit, we complete a methodical review and objective examination of all financial statements, including the verification of specific information. Actual details of each audit are determined by the auditor or as established by general practice.

Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.

An Audit allows you to...

• Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information.
• Facilitate the payment of corporate tax, goods and services tax, and other taxes on time and accurately, thereby avoiding interest, penalties, and investigations.
• Comply with banking covenants.
• Help deter and detect material fraud and error.
• Facilitate the purchase and sale of businesses.

Here's what you get...

You get the highest level of assurance because we go outside your company to obtain more information. Typically, we'll have written communication with:

• Your customers, to check outstanding receivable balances
• Your banks, to confirm cash or debt balances and terms
• Your vendors, to verify outstanding payable balances
• Your attorneys, for information on pending or threatened legal action

We also perform physical inspections by observing your inventory counting methods and performing test counts. We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client's supporting work papers.

Audits Not Just for Public Entities

All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies and other organizations receiving government grants. Audits are sometimes required by financial institutions as a condition of financing or for assessment of the company's risk. Also, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits as checks of their management teams.

Review - Limited Assurance

Less extensive than an audit, but more involved than a compilation, a review consists primarily of analytical procedures applied to the financial statements, and various inquiries through your company's management team. If Cook Martin Poulson discovers any inconsistencies or other questionable content, we may request more detailed reviews of specific areas.

Why would a business request a review instead of an audit?

A review is a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit. A review doesn't require us to study and evaluate your company's internal controls, verify data with third parties, or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.

Compilation - Lowest Level of Assurance

As the recognized accounting expert for many of our business clients, Cook Martin Poulson is often asked to compile original financial statements. In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles, the provided financial information, and a general understanding of your business.

Banks often require compilations from an independent CPA as part of their lending covenants. A compilation can also be a quick and easy way to get a clean, independent financial statement for interested investors or stockholders.