Tim Valentino of H&J CPAs explores fair market value and provides a better understanding of what it is and how it is used.
Many people use “audit” as a general term, but an audit is a very specific thing. An audit is the rendering of an opinion on the financial statement as to its fair presentation.
When H&J CPAs is hired to do an audit, our team verifies and substantiates various material items which include contacting vendors, customers, suppliers and financial institutions to verify amounts. This also involves looking at fixed assets such as equipment, inventory and investments. In addition, the audit requires inspecting all internal control procedures and processes. Most businesses do not have audits performed; instead, they get a compiled financial statement.
In comparison, a compilation is far less in scope than an audit and is essentially taking your financial numbers and putting them into the prescribed format for a financial statement.