Financial statement audits are a specialized service provided by professional auditing firms. These audits involve an independent examination of an organization’s financial statements to ensure they are presented fairly and accurately in accordance with the applicable accounting standards. The purpose of a financial statement audit is to provide assurance to stakeholders, such as investors, lenders, and regulators, that the financial statements are reliable and can be trusted. During a financial statement audit, auditors assess the organization’s internal controls, test transactions and balances, and gather evidence to support the accuracy and completeness of the financial statements. They also evaluate the organization’s compliance with relevant laws and regulations. It is important to note that while financial statement audits provide reasonable assurance, they do not guarantee the detection of all errors or fraud. Auditors perform their work in accordance with professional standards and exercise professional skepticism, but there is always a risk that material misstatements may not be detected.

Financial statement compilations are a service provided by accounting professionals to assist organizations in preparing their financial statements. Unlike financial statement audits, compilations do not involve an independent examination or verification of the financial information. During a financial statement compilation, the accountant gathers financial data provided by the organization and organizes it into the appropriate financial statement format. The accountant may also make adjustments or disclosures to ensure compliance with accounting principles. It is important to note that a financial statement compilation does not provide any assurance on the accuracy or completeness of the financial statements. The accountant’s role is limited to presenting the financial information in a proper format without providing any opinion or assurance on its reliability. Financial statement compilations can be useful for organizations that require financial statements for internal purposes or for sharing with stakeholders who do not require an independent audit. However, if stakeholders such as investors or lenders require assurance on the financial statements, a financial statement audit or review may be necessary.

IFRS conversions and technical advice are services provided by accounting and consulting firms to assist organizations in transitioning from their current accounting standards to International Financial Reporting Standards (IFRS). IFRS is a globally recognized set of accounting standards used by many countries around the world. IFRS conversions involve assessing an organization’s existing financial reporting practices and making necessary adjustments to align them with IFRS requirements. This process may include analyzing the impact of adopting IFRS on financial statements, identifying differences between current accounting standards and IFRS, and implementing changes to ensure compliance with IFRS. Technical advice related to IFRS involves providing guidance and expertise on complex accounting issues and interpretations of IFRS requirements. This can include assistance with accounting treatments for specific transactions, guidance on disclosure requirements, and support in understanding and applying the principles of IFRS. Engaging professionals with expertise in IFRS conversions and technical advice can help organizations navigate the complexities of transitioning to IFRS and ensure compliance with the standards. It is important to work with qualified professionals who have a deep understanding of IFRS and stay updated with the latest developments and interpretations in the field.

Agreed Upon Procedures (AUP) assignments are engagements where an independent professional performs specific procedures on a subject matter and reports the findings. Unlike financial statement audits, AUP assignments are tailored to meet the specific needs of the client and are not intended to provide an overall opinion on the financial statements. In an AUP engagement, the procedures to be performed are agreed upon by the client, the responsible party, and the practitioner. These procedures can vary widely depending on the nature of the engagement and the specific requirements of the client. The practitioner’s role is to perform the agreed-upon procedures and report the factual findings without providing an opinion or conclusion. The AUP report typically includes the procedures performed, the findings, and any other relevant information. The report is intended for the use of the specified parties who have agreed to the procedures and is not intended for general distribution. It is important to note that AUP assignments do not provide the same level of assurance as financial statement audits. The findings are limited to the specific procedures performed and do not provide an overall opinion on the subject matter. If you require a higher level of assurance, a financial statement audit may be more appropriate.

Financial statement reviews are another type of service provided by auditing firms. Unlike financial statement audits, reviews provide limited assurance rather than reasonable assurance. During a financial statement review, auditors perform analytical procedures and make inquiries to obtain a basic understanding of the organization’s financial statements. They assess the plausibility of the financial information and perform limited procedures to identify any material modifications that may be necessary for the financial statements to conform to the applicable accounting standards. Compared to audits, reviews involve less extensive testing and do not require auditors to obtain a deep understanding of the organization’s internal controls. As a result, the level of assurance provided by a review is lower than that of an audit. It is important to note that a financial statement review does not provide the same level of assurance as an audit. However, it can still be a valuable service for organizations that do not require the higher level of assurance provided by an audit or for stakeholders who have a lower level of risk tolerance.