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Assurance Services

Audits, Reviews, & Compilations

Financial Statements are the primary report card of a company's ability to perform and make a profit.  Many different decision-makers rely on the financial statements and their disclosures to provide adequate information to make key decisions.  Those who use financial statements include owners/investors, bankers, underwriters, creditors or anyone with a decision making purpose.  For the financial statements to be of any use to a decision maker there must be a level of assurance that your financial statements conform with a governing set of standards and are free from material error.  Certified Public Accountants are the only professionals who are charged by the public with the responsibility to independently assess a level of assurance.

Leffel, Otis, and Warwick provides assurance services to numerous clients throughout the year in a variety of industries but are specialists for assurance services in the agricultural industry.  We use a team approach with all our financial statement engagements.  Our goal is to provide you with timely, useful information that can provide you the basis for meaningful business decisions.

Audits

Audits are appropriate for businesses that must offer the most extensive level of assurance to outside parties.  We examine financial statements by testing the accounting system and supporting records.  Usually this includes performing analytical procedures, confirmations of balances with third party sources, observations of inventories and testing selected transactions by examination of supporting documents.  The completion of an audit results in our reporting an opinion, stating whether the financial statements are presented fairly and whether they are in conformity with generally accepted accounting principles.

An important byproduct of our audit services is the Management Recommendation Letter.  Through it, we furnish suggestions to your management which can result in potential benefits such as:

  • Improved cash flow

  • Increased profitability

  • Improved asset protection

  • These suggestions provide you with the most advantageous method of operations and implementations

Reviews

Reviews are often needed for companies that must report their financial position to third parties such as creditors, regulatory agencies, or business owners who are not actively involved in the management of the company.  In a review, we make inquiries concerning financial statement related matters and apply analytical procedures designed to identify unusual items or trends in the financial statements that may require further analysis.  We issue a review report providing limited assurance that material changes to the financial statements are not necessary in order to conform to generally accepted accounting principles.  A review's assurance is less than an audit but more than a compilation.


Compilations

Compilations involve preparing financial statements based on information provided by a company's management.  We look for obvious mistakes and will often make some adjustment to the accounting records.  However, a compilation does not provide assurance that the materials submitted by the company are valid or were prepared in conformity with generally accepted accounting principles.

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