Agreed-Upon Procedures Engagements
Green & Vaughan performs a broad scope of individually tailored agreed-upon procedures and assurance services. Our CPAs have the experience, licensing and continuing education to perform detailed AUP’s for clients in todays market. An AUP is an attestation service in which you engage Greene & Vaughan to perform specific procedures and report findings.
“Attestation services” are services whereby our firm “attests” to the fairness of the financial information presented and signs a report that summarizes the findings. This is different from a tax return which is issued without any such attest report. These services range from a basic compilation to a much more involved full scope audit. An informed understanding of each of the three varying levels of services we provide will allow you to determine which is appropriate for your specific needs.
Audited Financial Statements
Auditing services is the highest level of assurance our attest services offer. Audits must be performed by an independent CPA, like Green & Vaughan, CPA, PLLC. Extensive testing of account balances and other assertions contained within a financial statement audit provides the users with an independent auditor opinion confirming whether the financial statements present fairly the entity’s financial statements and footnotes. All audit services are performed in accordance with several procedures required by generally accepted auditing standards (GAAS) to gain reasonable, but not absolute, assurance that the financial statements are free from material misstatement, whether caused by error or fraud. The issuance of an independent audit also provides assurance that the statements are in conformity with accounting principles generally accepted in the United States of America (GAAP).
Reviewed Financial Statements
A review must be performed in accordance with Statements on Standards for Accounting and Review Services (SSARSs). A review is less intensive than an audit. In a review, analytic tools and inquiries of management are the primary activities performed, along with obtaining an understanding of the entity and the components of the financial statements.
The goal of a review is the issuance of an accountants report providing limited assurance that there are no material misstatements in the financial statements and stating that the CPA is not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with GAAP. Reviews generally are requested by users of the financial statements who require a higher degree of service and assurance than a compilation but not to the extent of an audit.
Compiled Financial Statements
The third type of attestation services a CPA may provide is a compilation. In a compilation, the CPA compiles the books and records of a client without any performance of substantive procedures, verification or confirmation of balances. A compilation does not involve any assurance or testing of the financial statements. but involves presenting financial information provided by the client in the form of financial statements that are in conformity with GAAP.