In addition to audit services, DLHC offers several other levels of assurance including compilations, reviews, agreed upon procedure engagements, projections and forecasts and other services provided under the attest standards. Such services require DLHC to be independent as described in the AICPA’s code of professional ethics. We can perform a compilation and not be independent, but in this case, we must disclose the lack of independence in our accountant’s report. Many small businesses choose the compilation level of service for monthly, quarterly or annual financials.
When there is a need for a greater level of assurance short of performing an audit, we can perform a review of the financial statements. In a review engagement, the CPA performs analytical review procedures and makes inquiries to address management’s assertion that the financials are prepared in accordance with generally accepted accounting procedures (GAAP).
Another option for obtaining a higher level of assurance short of performing an audit is the agreed upon procedures engagement. DLHC will meet with management and other parties requesting the service to establish the scope of the engagement. Upon completion of the agreed upon procedures, DLHC reports on the procedures performed along with the resulting findings.
If a business owner is planning a major transaction such as an acquisition, a refinancing or an infusion of new capital, we believe that a forecast or projection may be very useful. Sometimes such services are incorporated in business plans formulated after a strategic planning session with management and the Board. Either the strategic planning session can be moderated by a DLHC professional or can be performed by a consulting firm that we work closely with.