Overview of Review Engagements with BryMar
The review engagement with BryMar is designed to offer lenders and external stakeholders a fundamental level of assurance regarding the accuracy of financial statements. As a business expands and seeks more substantial financing and credit, opting for a review becomes a pertinent consideration.
Objective of a Review
Unlike a comprehensive audit, BryMar's review service involves analytical procedures, inquiries, and other methods aimed at providing "limited assurance" on financial statements. This level of assurance serves as the foundation among CPA assurance services. It is crucial, however, that BryMar ensures its independence before undertaking the review engagement.
Scope of Review
In the course of a review engagement, BryMar commits to understanding the industry in which your business operates, encompassing relevant accounting principles and practices. Additionally, BryMar gathers comprehensive knowledge about your business, including accounting principles and practices specific to your operations, to pinpoint potential areas of material misstatements in financial statements.
Scope Comparison with Audit
It is essential to note that a review is considerably narrower in scope compared to an audit. Unlike an audit, a review does NOT delve into assessing internal controls, fraud risk, or conducting extensive testing of accounting records through various procedures commonly performed in audits.
Review Report and Conclusion
Upon completion, BryMar issues a formal report that includes a conclusion based on the review. This conclusion addresses whether there are any material modifications necessary for the financial statements to align with the applicable financial reporting framework.
Applicability and Benefits
A review engagement with BryMar is particularly suitable for growing businesses seeking larger and more complex levels of financing and credit. Moreover, business owners looking for increased confidence in their financial statements, aiding in result evaluation and key decision-making, find value in opting for a review.
BryMar's review engagement offers a balanced level of assurance, making it a crucial component for businesses navigating growth and seeking enhanced financial confidence.
Overview of Audit Engagements with BryMar
An audit is the highest level of assurance service performed by a Certified Public Accountant (CPA), with BryMar taking the lead. The primary goal is to offer creditors, investors, and other external stakeholders a substantial level of confidence in the accuracy of financial statements.
Objective of an Audit
BryMar, the CPA conducting the audit, issues a formal report expressing an opinion on whether the financial statements are presented fairly, in all material aspects, and in accordance with the applicable financial reporting framework. This level of assurance is often necessary when seeking significant financing, attracting outside investors, or preparing for a business sale.
Audit Procedures
During an audit, BryMar undertakes procedures to obtain "reasonable assurance," defined as a high but not absolute level of assurance that financial statements are free from material misstatement. These procedures involve assessing the business's internal controls, evaluating fraud risk, and corroborating financial statement amounts and disclosures through various means, including inquiry, physical inspection, observation, third-party confirmations, examination, and analytical procedures.
Independence Requirement
Similar to a review, in an audit engagement, BryMar is obligated to ensure independence. If independence is impaired, the audit cannot proceed. This independence requirement emphasizes the importance of unbiased and objective evaluations.
Communicating Findings and Recommendations
Upon completion, BryMar issues a formal report expressing an opinion on the fairness of the financial statements. Additionally, any significant or material weaknesses in the internal control system identified during the audit are reported. This feedback not only fulfills regulatory obligations but also provides valuable insights for improving business operations.
Applicability and Benefits
Given its comprehensive nature, an audit is particularly suitable when seeking complex or high levels of financing and credit. It is also deemed appropriate when attracting outside investors or preparing for business transactions such as a sale or merger. The benefits of an audit can help guide business decisions and contribute to overall financial transparency and credibility.
The thorough and comprehensive nature of BryMar's audits not only instills confidence in the accuracy of financial statements but also offers valuable insights for improving internal controls and overall business operations.
Work with BryMar
Ready to take your financial assurance to the next level? Whether you're considering a review or an audit, BryMar CPA is here to guide you through the process and help you make informed decisions for your business. Reach out today to schedule a consultation and discover how our tailored services can support your growth and enhance your financial confidence!