Types of Reports Issued
Our accountant’s reports for financial statements are designed to fit your needs. We determine this based on the level of assurance you require. Reports can be of three kinds:
- Notice to Reader
- Review Engagement Report
- Auditors’ Report
Notice to Reader
Notice to reader reports are based on information provided by the client and usually involves professional assistance with bookkeeping, organizing and preparing annual tax return. This is all done through CPAs complying with professional guidelines.
Review Engagement
This form of report is issued in correspondence to bank, investor or statutory requirements. A limited degree of assurance is provided because the CPA must consider plausibility of the information being provided using limited procedures. The CPA uses procedures that consist of discussion and inquiry of the client and the analytical procedures to assess the plausibility of account balances. As soon as plausibility is established, the CPA issues the review engagement report on the financial statements.
Audit Engagement
Along with the review engagement procedures, the CPA then carries out substantive procedures to get a better understanding of the client’s system of internal controls. This enables the CPA to provide the highest level of assurance by issuing an Independent Auditor’s report.
AGT can Help You to Choose the Right Engagement
Engagement type is usually decided by users of financial statements. Usually capital providers, such as banks, government, and other third parties, often require clients to provide financial statements with a certain degree of assurance. Sometimes other arrangements such as partnerships and joint ownerships can also stipulate a certain degree of assurance engagements.