An audit engagement is the highest level of assurance service and is intended to provide a user comfort on the accuracy of the financial statements. We perform procedures to obtain “reasonable assurance” (defined as a high but not absolute level of assurance) about whether the financial statements are free from material misstatement.
In an audit, we are required to obtain an understanding of your entity’s internal control and assess fraud risk. We are also required to corroborate the amounts and disclosures included in your financial statements by obtaining audit evidence through inquiry, physical inspection, observation, third-party confirmations, examination, analytical procedures and other procedures.
An audit is typically appropriate and often required when you’re seeking complex or high levels of financing and credit. An audit also is appropriate if you’re seeking outside investors or preparing to sell or merge with another business. Governmental entities and not-for-profit organizations may be required to have an audit engagement, see Governmental and Not-for-Profit Audit and Accounting Services .