All CPAs are accountants, but not all accountants are CPAs. While working with an accountant in Duluth, Dunwoody, Johns Creek, Norcross, Roswell, Sandy Springs, and the surrounding areas is a smart option, it’s important to know that there are some areas where an accountant just can’t provide insight. That’s where you need a CPA on your side. At Amgd Ibraheem, CPA, they are prepared for you with accountants as well as CPAs. Their team can help you no matter if you have a one-person operation or you have a thousand employees. Where CPAs have exclusive access are providing financial statements from an audit, a review, and a compilation.
Audits and CPAs
One aspect that CPAs can do for businesses that regular accountants cannot is in the area of audits. This is one of the most important functions that a CPA can provide. An audit for a business is done to provide the decision-makers with the financial statements as well as an opinion for those decision-makers as to whether the financial statements are being prepared according to the accepted reporting framework. Audits are helpful for outside organizations to be confident that a business is doing things properly, and for internal controls that the business can improve or implement. A CPA must be independent of the business in order to perform an audit.
Reviews and CPAs
Because audits are quite involved and invasive by their nature, often time businesses will choose to instead do a review rather than an audit. A review is conducted to provide limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with the financial reporting framework. Because a review is substantially less intensive in scope than an audit, the CPA cannot express an opinion on the fairness of the financial statements taken as a whole. A CPA must be independent of the business in order to perform a review.
Compilations and CPAs
Because of the even more limited scope of compilation procedures, the CPA’s report will not express an opinion or provide any assurance regarding the financial statements. A compilation involves two things: first, gaining a general understanding of your business, accounting principles used, and financial reporting system; and second, presenting financial information in the accepted format of proper financial statements. While independence is required at the other levels of service, the CPA does not have to be independent of your organization in Duluth, Dunwoody, Johns Creek, Norcross, Roswell, Sandy Springs, and the surrounding areas to perform a compilation. The report must state that the accountant is not independent. Amgd Ibraheem, CPA, has expert CPAs on staff to help with any of the above requests.