In the course of carrying out your engagement, information will be generated and insights developed to improve controls and safeguards ultimately leading to greater efficiencies and clear, concise and understandable financial information.
Some businesses may require a review of their financial statements. If you choose to pursue a review (including agreed-upon procedures as required by state law), it will be conducted in accordance with:
- Statements on Standards for Accounting and Review Services and Statement on Standards for Attestation Engagements promulgated by the American Institute of Certified Public Accountants (AICPA);
- The standards contained in Government Auditing Standards, issued by the Comptroller General of the United States, as applicable; and
- The Louisiana Governmental Audit Guide, issued by the Society of Louisiana Certified Public Accountants and the Louisiana Legislative Auditor.
We will perform inquiries of your management and in-depth analytical procedures, such as trend and ratio analysis. We will also perform procedures, as agreed by management, to test your organization’s compliance with certain laws and regulations.
Because a review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole, Ericksen Krentel will not express such an opinion.
Compiled financial statements are prepared without audit or review procedures and generally are recommended where creditors and others do not require assurances from the CPA.
An agreed-upon procedures engagement begins when a client wants to issue a report of findings based on specific procedures performed on subject matter. Your experienced accountant can help you evaluate the subject matter or assertion. Because your needs may vary, the nature, timing and extent of the agreed-upon procedures may vary as well; consequently, you will assume responsibility for the sufficiency of the procedures since you best understand your specific needs.
We will not perform an examination or a review during an agreed-upon procedures engagement and will not provide an opinion or negative assurance. Instead, the report will be in the form of procedures and findings.
Your knowledge source for achieving your business and personal financial goals.
Ronald H. Dawson, Jr.