Board of Directors often need assurance that their financial statements accurately represent the true financial position of their company. Florida statutes also require financial statements depending on several factors. There are three levels of assurance to meet your associations needs as follows:
Audit - Highest Level of Assurance
An audit is one of the most significant and comprehensive services a CPA can provide. The CPA expresses an opinion about the fairness of presentation on the association's financial statements. The CPA conducts the audit in accordance with generally accepted auditing standards and provides reasonable assurance that the financial statements are not materially misstated. An audit also included examining and testing evidence that supports the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by the association, making an overall assessment on the risk of fraud, and evaluating the overall financial statement presentation.
Review - Limited Assurance
Independent review consists of inquiries into the association's management and certain analytical procedures that are applied to financial data obtained from the association. The purpose of a review is to obtain a basis for expressing limited assurance that no material modifications are necessary in order for the financial statements to be in conformity with generally accepted accounting principles. The limited procedures applied in a review make the report somewhere more reliable that a compilation, but substatially less than an audit.
Compilation - Lowest Level of Assurance
A compilation involves placing financial data obtained from the association into a financial statement format. The CPA does not express an opinion or any other form of assurance on complied financial statements.