Client Portal
audits-compilations

Audit, Reviews, and Compilations

The MichaelSilver Accounting and Assurance team works closely with our clients to ensure they have the sound financial information needed to efficiently and effectively manage their businesses.

Banks, creditors, investors, and other entities outside of an organization often require professional assurance that a company's financial statements are an accurate reflection of its financial results. MichaelSilver has expertise in preparing the financial statement reports (Audits, Reviews, and Compilations) to satisfy those requirements and has worked with numerous clients in doing so.

Audits

Circumstances include:

  • Bank Required
  • Regulatory
  • Absentee Ownership
  • Bonding/Insurance
  • Fraud Concerns
  • Governmental Requirements (401(k) audits)

An Audit provides reasonable assurance about an entity’s financial statements. MichaelSilver's audit team performs procedures to obtain evidence to support information included in the financial statements. These procedures include obtaining an understanding of the company’s internal control, assessing fraud risk, and testing accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, the examination of source documents, and outside verification, such as confirming information directly with banks, customers, vendors, and creditors. If your entity has inventory, we will observe it at or near year end to substantiate its existence. At the conclusion of the engagement, our auditors provide an opinion in an Independent Auditor's Report. 

Reviews

Circumstances include:

  • Bank Required
  • Absentee Ownership
  • Management Review
  • Trend Analysis

A Review provides limited assurance about an entity's financial statements. The procedures performed by MichaelSilver include applying analytical procedures to financial data and asking management relevant questions. Typical analytical procedures performed during a review engagement include trend analysis, comparisons of expense balances to prior periods, and various ratio analyses. Once review procedures have been completed and we have obtained limited assurance that no material modifications are needed in the financial statements, an Independent Accountants' Review Report is issued.

Compilations

Circumstances include:

  • Bank Required
  • Financial Statements for Management Review
  • Books Clean Up

In a Compilation engagement, MichaelSilver gains an understanding of the entity and the industry in which it operates. Procedures include assisting management in presenting financial information in the form of financial statements. In addition, we often perform other accounting services, including procedures similar to those performed in a "Check of Accounts." These procedures include ensuring that balance sheet accounts have been reconciled, that they agree to subsidiary ledgers and, generally, make sense. We also perform compilations of personal financial statements, as often required by banking and financial institutions. A compilation engagement does not provide any assurance about the amounts shown in the financial statements. The end result is an Accountants' Compilation Report accompanying the financial statements.

Financial Statements for Employee Benefit Plans

Our team of Accounting and Assurance professionals can provide the year-end compliance and financial statement services specific to satisfying the requirements dictated by the Employee Retirement Income Security Act (ERISA). We work closely with your in-house staff to provide guidance and advice on how to prepare for this type of financial statement engagement. We are committed to understanding our client's unique circumstances to provide quality and reliable financial statement services.

Check of Accounts - Our Tailored Service

MichaelSilver has created a tailored service outside the realm of The American Institute of Certified Public Accountants Audit, Review, and Compilation engagement requirements. A "Check of Accounts" is our analysis of the work performed by an entity's accounting department. The check, which is typically balance sheet focused, includes ensuring that accounts have been reconciled, account balances agree to subsidiary ledgers, and account detail is kept up-to-date.

The deliverable is a letter to management pointing out areas that may need attention and providing any material adjustments that came to our attention.

In all of these engagements, MichaelSilver informs management of any recommendations that could improve internal accounting functions, strengthen internal controls, or improve the accuracy of the entity's accounting and financial records. This information may be communicated either verbally or in writing.

Questions?

To learn more, please contact MichaelSilver's Accounting and Assurance Group leader, Phil Kent, CPA, Partner, at 847-982-0333 or contact us.