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Attestation services provide a report on subject matter or an assertion about subject matter that is the responsibility of another party who is independent of the person issuing the report or making the assertion. Generally a CPA is the person who makes these types of conclusions by expressing a conclusion or opinion about the reliability of the subject matter. Attestation services can be compilations, reviews, audits, or agreed upon procedures. We can provide any of the following attest services.

The purpose of an audit is to independently verify by sight, confirmation, discussion with management, assessment of internal controls and analytical procedures, that a company's financial reports are substantively correct. Audited financial statements will also include a statement of changes in financial and detailed and referenced footnotes detailing the companies accounting methods, policies, and certain financial data. Again, both the statement of cash flows and the attached footnotes and the procedures and reporting thereon are governed by the AICPA, SAS's, and other governing and regulatory agencies.

A review consist predominantly of an assessment of the company's books and records by the performance of analytical tests, certain analytical procedures (such as the comparison to prior books and records), and calculation of certain financial tests and ratios. There procedures, by their very nature are intended to give reasonable assurance to an outside reviewer, rather than the detailed verification and reporting requirements required by an audit. Reviews are frequently requested by banks or insurance companies issuing performance bonds who want a higher degree of service/verification than a compilation, which is discussed next, but not the full extent and cost of an audit.

Reviews typically also include a statement of changes in financial position as well as detailed footnotes.

Essentially, a compilation is when a CPA simply compiles the books and records of a client without the performance of any substantive procedures, independent verification or confirmation of any of a client's balance. Thus, a compilation is solely the representation of a company's management as no verification or procedures of account balances on the balance sheet or the profit and loss statement are required. Also, management has the option to also exclude from compiled statements the statement of changes in financial positions and all related footnotes.

Agreed Upon Procedures
Agreed upon procedures are the process of performing attest evaluations procedures in a pre-agreed to manner on results to which someone wants assertion that the information is correct. The most common form of agreed upon procedures is union election monitoring or contests composed of either drawing or tabulating votes. Agreed upon procedures can be used for anything which needs an opinion expressed about its completeness and accuracy to the extent of the procedures agreed to be performed.

Internal Auditing
Internal Auditing if the evaluation of the controls and procedures promulgated by management are being followed and upheld within the organization. Typically internal auditing is looking at and evaluating the internal controls within an organization to ensure organizations compliance. Internal auditing also looks at standard performance, efficiency, and effectiveness to ensure that the organization is operating in an effective and efficient manner.

7th Rule Accounting •  283 South Zeeb Road, Ann Arbor, MI 48103   Telephone: 734-769-1877   Fax: 734-332-3770   info@7thRuleAccounting.com
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