Tax Reviews for Your Business or Organization
No matter the success of your business, creditors, stakeholders, investors and/or other funding sources need confirmation that your financial statements authentically represent your company’s current financial situation. This is where tax reviews become an asset for your business.
Commonly, there are three main types of assurance that funding sources “look for” (this may vary depending on your company, the creditors, investors or stakeholders involved): Review, Audit, and Compilation assurance. At Rukosky and Associates we provide comprehensive tax reviews for your business. We’ll use our knowledge in the industry to meticulously plan the process and timing of your reviews depending on your company’s needs and desires.
Tax Reviews : Limited Level of Assurance
This level is less thorough than a full audit assurance yet more detailed than compilations, reviews offer limited assurance that your company or business’s financial reports are correct and truthful. A review will consist of fiscal inquiries regarding your company’s management and analytical methods on the financial statements. Your company usually needs a review when any types of investors or third parties are involved as they want to ensure the accuracy of your financial statements and reports. Reviews do not require us to fully analyze your company’s data, controls or conduct a physical inspect. Instead, review reports serve as limited level assurance that your company meets accounting principles according to the Generally Accepted Accounted Principles (GAAP).
A tax review differs significantly from an audit. Tax review engagements provide less assurance to the reader of the financial statements. Here’s a complete list of review procedures required to be performed by Rukosky & Associates:
- Inquiries as to the accounting practices and principles used by the business
- Procedures for recording and accumulating financial information
- Actions taken at owners’ or directors’ meetings
- Written representations from management regarding the accuracy of all information given to the CPA
- Receipt of all relevant information by the CPA
- Management’s responsibility for internal control
- Management’s responsibility to prevent and detect fraud
- Knowledge of fraud
- Information related to any significant subsequent events
- Analytical procedures regarding comparisons
- Expectations developed by the CPA of recorded amounts
- Ratios from recorded amounts
- Plausible relationships of recorded amounts
These specific procedures provide better understanding of key relationships among certain numbers. A tax review gives more assurance about the reasonableness of the financial condition presented in the financial statements.
Based on the inquiries and analytical procedures, Rukosky and Associates is able to express only limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with the applicable financial reporting framework. Because a review engagement is substantially less intensive in scope than an audit, we cannot express an opinion on the fairness of the financial statements taken as a whole.
