An assurance engagement (audit or review) may be required as part of an organization’s bylaws, by investors, or for the purpose of securing a loan through a financial institution or funding via government grants, or for any other reason.
One of the key requirements in an assurance engagement is that the accountant must be independent, and maintain independence in carrying out the engagement. The analysis and tests used in an assurance engagement can vary depending on the size, complexity and nature of the business. Further, a thorough assessment of internal and external risks and planning is crucial in any assurance engagement.
Whether you are a privately held organization / business, a charity, or non-profit organization Equinox CPA can meet your assurance requirements. Equinox CPA offers auditing or review services to small businesses and private corporations in Surrey, Langley, Delta and surrounding Metro Vancouver areas.
An audit engagement (of financial information) provides reasonable assurance on whether the financial statements, in all material respects, are prepared in accordance with an acceptable financial reporting framework. This provides the highest level of assurance. An auditor provides an opinion (reasonable assurance) on whether the financial statements are free from material misstatements.
An audit is carefully planned, and then properly executed to obtain sufficient appropriate evidence to support the auditor's opinion that the financial statements are free from material misstatements. A detailed understanding of a business and its internal controls, and an assessment of its risks sets the groundwork for the development and proper execution of the audit procedures.
A review provides a lower level of assurance than an audit. A review engagement is ideal where a lower level of assurance is required over the financial statements. It provides limited assurance on whether anything has been noted by a reviewer that the financial statements may not be free from a material misstatement. A review is based primarily on inquiry, discussion, and analysis type procedures.
A conclusion is provided on whether the financial statements are prepared, in all material respects, in accordance with a financial reporting framework.