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+1 (410) 370-2604
Certified Public Accountants and Business Consultants
USA: 8955 Edmonston Road, Ste #E, Greenbelt, MD 20770
Ghana: Aplaku Hills, Accra, Ghana
Tel/Fax: 1-888-829-0084, Email: Support@pacgroupinc.com
PAC Group provides various assurance services to businesses of all sizes. We can quickly compile your financial records into meaningful GAAP-compliant financial statements and offer limited-scope review testing. We can also perform full financial statements audits, agreed-upon procedures and other assurance or attestation engagement.
Will assure management, the Board, and regulators that financial statements are accurate, and operations are done in accordance with present applicable policies and regulations.
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Preparing financial statements of private entities based on information provided by the entity’s management. Through compilation services, a CPA prepares monthly, quarterly, or annual financial statements. However, he or she offers no assurance as to whether material, or significant, changes are necessary for the statements to be in conformity with generally accepted accounting principles, the cash basis, or the income tax basis of accounting. During a compilation, the data is simply arranged into conventional financial statement form. No probing is conducted beneath the surface unless the CPA becomes aware that the data provided is in error or is incomplete. However, before agreeing to perform a compilation, a CPA will take a “common sense” look at the entity to decide whether the client needs other accounting services, such as help in adjusting the accounting records
Here’s what a compilation entails
The CPA becomes familiar with the accounting principles and practices common to the client’s industry, and acquires a general understanding of the client’s transactions and how they are recorded. After compiling the financial statements, the CPA is obliged to read them and consider whether they are appropriate in form and free from obvious material errors. The CPA then issues a standard report that says, in effect, that the financial statements were compiled, but because they were not audited or reviewed, no opinion is expressed.
Compilation standards permit an accountant to compile financial statements that omit footnote disclosures required by generally accepted accounting principles or another comprehensive basis of accounting (cash or income tax). This is allowable as long as the omission is clearly indicated in the report and there is no intent to mislead users. However, when footnote disclosures have been left out, the CPA adds a paragraph to the compilation report stating that management has elected to omit disclosures. This paragraph lets the user know that if the financial statements contained this information, it might affect the user’s conclusions.
A compilation is sufficient for many private companies. However, if a business needs to provide some degree of assurance that its financial statements are reliable, it may be necessary to engage a CPA to perform a review or an audit
Demo of a compilation report
In a review, inquiries and analytical procedures are applied to private entities financial statements. A private entity may engage a CPA to perform a review of its financial statements and issue a report that provides limited assurance that material changes to the financial statements are not necessary. With respect to reliability and assurance, a review falls between a compilation, which provides no assurance, and the more extensive assurance of an audit.
Before a review, the CPA may have to compile the financial statements; however, in all cases, the financial statements are management’s statements, not the CPA’s. Management must have a sufficient understanding of the financial statements to assume responsibility for them. Two other factors differentiate a review from a compilation — the CPA must remain independent of the client during a review, and all appropriate footnotes must be included in the reviewed statements.
Here’s what a review entail
The CPA obtains a working knowledge of the industry in which the entity operates and acquires information on key aspects of the organization, including operating methods, products and services, and material transactions with related parties.
The CPA will then make inquiries concerning such financial statement-related matters as accounting principles and practices, recordkeeping practices, accounting policies, actions of the board of directors, and changes in business activities. Then the CPA will apply analytical procedures designed to identify unusual items or trends in the financial statements that may need explanation. Essentially, a review is designed to see whether the financial statements “make sense” without applying audit-type tests.
Keep in mind that during a review, a CPA does not confirm balances with banks or creditors, observe inventory counting, or test selected transactions by examining supporting documents. However, in many instances, a review—with its limited assurance —may be adequate for a business or its creditors. If more assurance is necessary, the organization may need to engage a CPA to perform an audit
Here is a Demo of a compilation report
We understand how important audited financial statements are to businesses, shareholders/owners, lenders, investors and other stakeholders. Our approach is to first understand the business and the risks it faces, and then to focus our efforts where they matter most. This method is effective and cost-efficient.
We consider it our job to continually inform our clients about accounting, financial and regulatory developments that may affect their business.
Our professionals identify your critical audit areas, determine your exposure to fraud risk, compare your internal controls and operating processes to the best in your industry, keep you abreast of changes in accounting rules and regulations and ensure the due diligence required to effectively test the accuracy and completeness of information presented in your financial statements.
We know that a successful audit engagement requires more than technical expertise and a scrupulous following of regulations and best practices. It also demands working as an integrated team with each of our clients and their internal professionals. To help ensure that this integrated teamwork is part of every audit engagement, each assignment has four components
We begin each assignment by confirming out understanding of the engagement’s objectives and establishing agreed-upon procedures. The agreed-upon procedures customize our methodologies to the objectives of the engagement that were spelled out in the proposal and other correspondence, factoring in the specifics of the client’s industry and business.
Other Engagement Services
Organizations have realized that financial reports alone do not adequately communicate opportunities or business risks. Increasingly, organizations have been called upon to issue reports on examinations, reviews or agreed-upon procedures. In addition, organizations have realized that financial reports alone do not adequately communicate either opportunities or business risks. Business leaders are therefore beginning to see the need and benefits from assurance that goes beyond traditional financial statements audits.
As auditors, we apply the same skills and rigor to many areas of an organization’s business that can be quantified and measured, whether in financial or non-financial terms. Where we are already the financial statements auditor, our insights and deep understanding of the organization can be instantly put to work in an efficient manner.
Our assurance and attestation services are conducted in accordance with Auditing standards. We help organizations learn how to define, capture, and report both financial and non-financial indicators. In addition, we provide independent assurance on the reliability or validity of information related to a product, service or activity for which the organization’s management is responsible. This helps uncover new ways of safeguarding reputations, build trust among stakeholders, and improve corporate performance.