Compilations, Reviews, and Audits

Financial regulatory duties are a part of life for businesses, organizations, and governmental entities. When you work with an accounting firm like us, our experienced professionals ensure that you have a worry-free experience that also focuses on achieving your business objectives.

Compilations

This is the first level of an assurance service. The performance of this engagement is governed by Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants.

A compilation engagement as defined by the AICPA has the least assurance of accuracy of your financial statements. This means we are not required to perform any audit or review on your financial statements, nor are we required to perform any procedures to verify the accuracy or completeness of the information provided by management. In addition, we are not required to express an opinion, a conclusion, nor provide any assurance on these financial statements.

Therefore, all that is required of us in a compilation engagement is to present your financial statements in accordance with accounting principles generally accepted in the United States of America. The financial statements produced from a compilation engagement is limited to management and third-party uses only.

Reviews

A review includes primarily applying analytical procedures to management’s financial data and making inquiries of entity management. It is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole.

Our responsibility is to conduct the review engagement in accordance with the Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America.

We are required to be independent and to meet ethical responsibilities, in accordance with the relevant ethical requirements of AICPA. At Abraham &Associates, LLP, we deploy the best in class cutting edge technology available in our industry to every process of our analytical reviews. In addition to this, we engage with key client personnel in form of interviews to gain better understanding of the company’s accounting policies,procedures, industry, operations and the financial statements.

Audits

An Audit engagement involves:

Performing procedures to obtain audit evidence about the amount and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment including but not limited to the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

Consideration of internal control relevant to the fair presentation of the clients financial statements and to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Client’s internal control.

Evaluating the appropriateness of accounting policies used by the client’s management.

Evaluating the reasonableness of significant accounting estimates made by management, And

Evaluating the overall presentation of the financial statements.

At Abraham & Associates, LLP, we work closely with key client personnel to gain knowledge of the company’s internal control systems as well as using cutting edge technology to perform verification and substantiation procedure on clients financials in compliance with Generally Accepted Auditing Standards(GAAS).

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