Audits, Reviews, Compilations, SSAE 16
Before investing in your company or providing a loan, creditors and investors need assurances that your company is in good financial health. Since different stakeholders require different levels of assurances, Johnson, Mackowiak & Associates offers a variety of options:
- Audits offer the highest level of assurance and consist of a meticulous review and examination of your company’s financial statements, including verification of specific information. Internal controls, selected transactions and communications with third parties are all part of the audit process. A report is then issued based on our findings.
- Reviews offer a more limited level of assurance. They are not as rigorous as an audit, consisting primarily of a review of financial statements and questions posed to the management team. If there are any inconsistencies, additional accounting procedures may need to be performed.
- Compilations provide the lowest level of assurance and are typically required by most banks’ lending agreements. This process includes compiling of financial statements without providing any assurances or auditing services.
- An SSAE 16 engagement may be required if a service company provides a service to another organization that could influence its financial position, data, or security. SSAE 16 audits provide assurances to clients that pertinent processes and systems are in place to mitigate the risks associated with having a third-party partner. This engagement and the associated audit process has become the “de facto” standard for service organizations. As a result, the SSAE 16 and associated audits are becoming synonymous with the “good housekeeping seal of approval.”
Whether you’re starting a new business, or running an established one, JMA can help.