Audits, Reviews and Compilations
In the process of serving our clients, the Hauk Kruse and Associates Firm engages, when possible, their internal accounting staff to assist in all of the financial activity with which we are involved. There are a number of benefits to this unique approach, to wit:
- Develops familiarity with processes and required documentation.
- Helps develop internal expertise.
- Builds stronger relationships between the two staffs
- Improves efficiency in the process providing economic benefit to the client
- Lowers the learning curve for all involved
In that some relationships you establish may at one time or another requires that you provide assurance for your financial statements, The Hauk Kruse & Associates provides three levels of assurance. The first level is the Audit, the second is the Review and the third is the Compilation. The Review is less complex than the Audit but more involved than the Compilation. Each level of Assurance serves its purpose and may be applicable to the specific circumstances of you or your company and budgetary considerations. Let's briefly address each, the Audit, the Review and the Compilation:
AUDITS - Highest Degree of Assurance
The Hauk Kruse Audit is an objective review and examination of you or your company's financial statements.
The Hauk Kruse & Associates, audit will involve a review of you or your company's financial controls, transactions, and communication with third parties. The result of our activity is a report on whether the financial statements of you or your company are fairly stated and free of material misstatements.
The Hauk Kruse audit provides a comfort level for stakeholders in your company including customers, bankers, suppliers, employees and investors. Additionally, the audit eases the process of buying or selling a business and helps deter material fraud and error.
Review - Ancillary Degree of Assurance
Less extensive than an audit, but more involved than a compilation, a review encompasses analytical procedures applied to financial statements, as well as inquiries involving you or your company's financial management. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review report expresses limited assurance that "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP).
Compilation - Lowest Degree of Assurance
In compiling financial statements for a client, we present information that is the "representation of that client or in the case of a business, the management" and expresses no opinion or assurance on the statements.
