An audit is the highest level of assurance and involves a thorough examination of a company’s financial statements and internal controls. The goal is to verify that the financial statements are free from material misstatement, whether due to fraud or error, and comply with accounting standards. Auditors provide an opinion on the fairness of the financial statements.
Assurance Services
Assurance services involve the independent professional examination of information to provide confidence to users. These services aim to improve the quality and transparency of information, reducing the risk of misinformation or misrepresentation. They are broader than just audit services and can cover a wide array of areas, from financial reporting to IT systems.
Service
Audits
Reviews
A review provides limited assurance. It’s less detailed than an audit but still involves inquiries and analytical procedures to give confidence that there are no material modifications that need to be made to the financial statements for them to conform to the relevant reporting framework.
Compilations
In a compilation, the accountant helps prepare financial statements but does not provide any assurance. The financial information is presented in the form requested by the client without verifying the accuracy or completeness of the data.
Examinations
This service is more specific, involving an independent assessment of certain areas such as internal controls, compliance, or forecasts. An examination provides a higher level of assurance in a specific area, similar to an audit, but for non-financial matters as well.
