There is a strong demand for information, outside of audited financial statements, that is useful for capital allocation and governance decisions. Investors, lenders, and other stakeholders rely on information about your Company to make important decisions that will affect your organization.
Additional Assurance Services
Real life example: Your bank gives you a credit line of a small amount such as $50,000 and requests a financial statement compiled by a certified public accountant. The bank uses the financial information to determine your Company’s creditworthiness and calculate the covenant ratios you need to meet per the loan agreement.
If you have such a request, we are here to help. Aimlon CPA’s team of professionals can assist with:
- Review services
- Agreed upon audit procedures
- Compilation services
Review services
Depending on the stakeholders’ needs, your Company may consider reviewed financial statements as an alternative to full set of financial statement audit services.
Review engagement services are limited in scope compared to a complete set of financial statement audits. Therefore, the report is limited in breadth, and it wouldn’t be as affirmative as a full audit.
Consistent with Review engagements and professional standards, Aimlon CPA will provide limited assurance regarding your Company’s financial statements prepared while following the accounting principles generally accepted in the United States of America, U.S. GAAP.
Agreed upon audit procedures
An agreed-upon procedures engagement is an attestation engagement where you ask our Firm to perform specific procedures on your subject matter. We report the findings to you without providing an opinion or conclusion.
- The procedures may be developed by our team of independent professionals, your Company, another party, or a combined group and may be prescribed by law, regulation, or contract.
- You assess the procedures and findings in the report and draw your own conclusions from the work that our Firm performed.
- Our expert team will provide the report to your Company’s Board of Directors, a potential lender, a business partner, or a prospective buyer of a business.
- The subject matter may be financial or nonfinancial such as information, documents, measurements, or compliance with laws and regulations.
Some examples of subject matter reports are:
- Calculate your Company’s inventory turnover ratio
- Verify the existence of your Company’s accounts receivable
- Calculate the age of your Company’s accounts receivable subject to loan collateralization
- Verify the payment of certain liabilities before closing a business acquisition
- Test new clients’ creditworthiness is researched and documented before their acceptance as a new client
- Verify the accuracy and completeness of the revenues and expenses data for a program that you are contractually required to report to a business partner
- Review your Company’s bank account Terms and Conditions, and determine if the Company’s card accountholders are provided with an option to “opt-in” to receiving marketing information from your Company, its affiliates and partners when enrolling/opening their account with you
Our team will meet with you to discuss your needs. They’ll enumerate the procedures to be performed, the timing, and the extent to ensure they are appropriate for the engagement’s intended purpose before issuing our agreed-upon procedures report.
Compilation services
While compiled financial statements are an economical way to report your organization’s performance and financial position, consistent with professional standards, our Firm cannot guarantee the underlying financial statements.
Our team will get an understanding of your Company’s activity and coordinate with your Accounting department to perform the required compilation procedures and release the financial statements once you approve the financial statements to be issued.