WE SPEAK THE LANGUAGE...
...of Audits, Reviews, and Compilations
Types of financial statements...
When CPAs prepare or assist in preparing financial statements, they are required under professional standards to issue a report on those financial statements. This report can be one of three types:
Regardless of the level of service performed by the CPA, the financial statements are the primary responsibility of the reporting entity.
We are experienced in performing audits, reviews, and compilations for entities of all kinds and sizes. This experience can be placed at your disposal.
ABBM Group, Ltd LLP and its affiliated firms in the UK200Group and International Association of Practising Accountants have teamed together to provide accounting and auditing services to companies and individuals all around the world.
Compiled financial statements represent the most basic level of service CPAs provide with respect to financial statements. In a compilation, the CPA must comply with certain basic requirements of professional standards, such as having a knowledge of the client's industry and applicable accounting principles, having a clear understanding with the client as to the services to be provided, and reading the financial statements to determine whether there are any obvious departures from generally accepted accounting principles (or, in some cases, another comprehensive basis of accounting used by the entity). It may be necessary for the CPA to perform "other accounting services" - such as creating your general ledger, or assisting you with adjusting entries for your books - before the financial statements can be prepared. Upon completion, a report on the financial statements is issued that states a compilation was performed in accordance with AICPA professional standards, but no assurance is expressed that the statements are in conformity with generally accepted accounting principles. This is known as the expression of "no assurance." Compiled financial statements are often prepared for privately-held entities that do not need a higher level of assurance expressed by the CPA.
Reviewed statements require that the CPA perform inquiry and analytical procedures in addition to the procedures described above for a compilation. Upon completion, a report is issued stating that a review has been performed in accordance with AICPA professional standards, that a review is less in scope than an audit, and that the CPA did not become aware of any material modifications that should be made in order for the statements to be in conformity with generally accepted accounting principles, or if applicable, another comprehensive basis of accounting. This is known as the expression of "limited assurance." Reviewed financial statements are often prepared for entities that have bank loans, outside investors, or trade creditors, but those third parties do not require audited statements.
Audited financial statements are the product of a CPA's
level of assurance services. In an audit, the CPA performs all of
steps indicated above regarding compiled or reviewed statements, but
performs verification and substantiation procedures. These
and substantiation procedures may include direct correspondence with
or debtors to verify details of amounts owed, physical inspection of
or investment securities, inspection of minutes and contracts, and
similar steps. Also, the CPA gains a knowledge and understanding
the entity's system of internal control. When the audit is
the CPA's standard audit report states that an audit was performed in
accordance with generally accepted auditing standards, and expresses an
opinion that the fiancial statements present fairly the entity's
financial position and
results of operations. This is known as the expression of
As might be expected, compilations are the least expensive service, with reviews being more, and audits being the most expensive service. It is impossible to state costs with certainty, but as a general rule of thumb, a review can be expected to cost about 30% more than a compilation, and an audit can be expected to cost about 30-40% more than a review. Most firms charge for these services based on time expended, and obviously more time is expended as the level of service rises.
We will discuss with you fully all costs for accounting and auditing engagements, including the pros and cons of each level of service, and will assist you in choosing the level of assurance for your financial statements that is appropriate for you.
Who we are...
ABBM Group, Ltd LLP may be the biggest small firm you’ll ever find…big in ideas, and big in vision. Big in quality of work product and quality of client service. And yet we’re small enough to have a close relationship with clients.
UK200Group members - including IAPA members, of which UK200Group itself is a member - are independent accounting firms located in more than 200 cities around the world, including about 20 members in principal cities of the U.S. Each member firm is a leader in its geographic area, and was admitted after a rigorous investigation. Founded in 1979, the organizations have experts in every conceivable field, and its members meet regularly to exchange ideas and develop personal relationships - all designed for your benefit.
At ABBM, we work hard at maintaining relationships with our UK200Group and IAPA colleagues around the world. This means we can pick up the telephone to provide an introduction for you with a colleague overseas at a moment’s notice. That’s a big plus for you!
We were established in 1967, and our record of service has built for us a reputation as one of THE quality firms in Texas.
We serve public and privately-owned companies, Americans living overseas, foreign persons and companies residing in and doing business in the U.S., high income individuals, partnerships, trusts, estates, and non-profit organizations.
We want to perform the highest quality professional services available for a reasonable fee. In doing so, we will conform to the high professional standards imposed by the profession in which we practice.
That’s not easy. It takes a stringent system of quality control, and highly qualified and motivated people. It demands dedication and hard work. It means no cutting corners.
At ABBM Group, Ltd LLP, we feel a strong sense of duty to our clients - and ourselves - to be true to those lofty principles.
We speak the language!
For more information,
contact Clinton F. Bateman, CPA (firstname.lastname@example.org) or Kara
Bateman McDuffie, CPA (email@example.com)
A Member Firm Of
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