Comprehensive Attestation Services:
Ensuring Financial Integrity and Audit Readiness
Attestation services are akin to audits, involving a meticulous review of a sample of financial records and statements by our skilled accountants. The objective is to assess the reliability of the company’s accounting methods.
Financial institutions leverage attestation services to inform lending decisions, while organizations adopt attestation to monitor their accounting practices. Primarily geared towards audit preparedness, our attestation services offer valuable assistance, especially for organizations anticipating future audits
Attestation Services Include
Compilations, Reviews and Audits
for Small Businesses
Within the realm of attestation services, which encompass compilations, reviews, and audits, the distinguishing factor lies in the level of risk involved. Accountants commonly categorize attestation into three levels, each denoting a specific degree of scrutiny. Let’s delve into the nuances of these terms:
Compilations
A compilation stands as the most basic form of attestation, where a CPA focuses on assembling financial statements and key figures, such as account balances. Unlike reviews or audits, no assurance is provided regarding the reliability of the compiled information. While not suitable for audit preparedness, compilations find utility in tasks like formulating operating budgets or presenting financial statements, offering a foundational organizational tool without the rigorous scrutiny applied in higher levels of attestation.
Reviews
Reviews represent a higher tier in attestation services, surpassing compilations by incorporating internal testing of financial data. This involves engaging with company personnel to discuss accounting practices and gather essential financial information. In the event of discrepancies, CPAs utilize analytical tools to address them. More comprehensive than compilations, reviews offer a level of depth that may be suitable for obtaining small loans or lines of credit. Nevertheless, the assurance provided by the CPA is limited, offering only a moderate level of confidence in the reliability of the presented information.
Audits
An audit stands as the most comprehensive and exhaustive form of attestation, demanding a substantial investment of time and effort. In the audit process, the accountant conducts thorough interviews with employees, examines financial documentation at its source, engages in third-party verifications, and employs various analytical tools for meticulous testing. Audits aim to instill confidence in financial reliability, proving crucial for companies seeking substantial financing or capital through equity. Third-party lenders often require audits, making them essential for ensuring the highest level of financial transparency and accountability.
At JHG Accounting Firm, LLC, we offer a comprehensive range of attestation services, including compilations, reviews, and audits, tailored for small companies and organizations. If you’re uncertain about the most suitable attestation level for your company, allow us to assist you in making an informed decision.
Three Reasons Why Small Companies Should
Consider Attestation Services
Attestation services are valuable research and discovery tools for companies, so there’s several reasons why they’re worth considering. Three of those reasons include:
1. Enhanced Credibility and Trustworthiness
Small companies can bolster their credibility and build trust with stakeholders, including customers, investors, and lenders, by undergoing attestation services. A third-party examination of financial records adds a layer of assurance and reliability to financial reporting.
2. Facilitating Financial Decision-Making
Attainment of clear and accurate financial insights through attestation services aids small companies in making informed decisions. Whether planning for growth, seeking financing, or strategizing for the future, reliable financial information is invaluable.
3. Meeting Regulatory and Lender Requirements
Many regulatory bodies and lenders, especially third-party lenders and investors, may require attestation services as a condition for financing or investment. Complying with these requirements positions small companies favorably and opens doors to various funding opportunities.