This includes a detailed investigation into a business’s financial statements and provides the highest level of assurance for investors and lenders, or for publicly-held businesses as part of their statutory compliance.
As such, these financial statements are comprised of transactions and documents provided by the business undertaking the audit. Most importantly, the audit provides the highest level of assurance, otherwise known as reasonable assurance. There, it carries higher authority than a review.
An audit requires far more detailed investigation into a business’s financial statements, making it a more expensive option than a review.
Carampako Financial Audit services
This type of audit is most commonly intended to result in a certification of the financial statements of an entity. Importantly, this certification is required by certain investors and lenders, and for all publicly-held businesses.
The objectives of an external audit are to determine:
- The accuracy and completeness of the client’s accounting records;
- Whether the client’s accounting records have been prepared in accordance with the applicable accounting framework; and
- Whether the client’s financial statements present fairly its results and financial position.
- Independent Reviews
An independent review is the latest addition to the Companies Act that provides limited assurance. Therefore, this type of financial review requires less rigorous investigation, and the costs are inevitably less than for an audit.
Audit or independent review? Which Financial Review is best for your Business?
Either way we provide the service of an independent review, as well as assist in the preparation of an audit.