What is the difference between an of audit and review report?
Audit: An independent Audit Report is a comprehensive type of assurance service and requires the auditor to express an opinion on a company’s financial statements prepared in accordance with Generally Accepted Accounting Practices (GAAP). Audits are typically required as a result of financing, investor, or governmental requirements.
Typically, during an audit, an independent auditor evaluates a company’s internal accounting system and its financial records. The auditor will then issue a report containing the findings of their audit.
Review Report: A review report is more limited assurance service and involves the accountant performing analytical procedures on financial statements to get a general understanding of the company’s finances. An important difference between an audit and a review is that an audit provides more reasonable assurance, whereas a review does not express an opinion. A review is also a potential requirement if the company has financing.
Do I need to file an audit or review report?
All registered charities with have gross revenue between $500,000 and $1,000,000 as indicated on your IRS Form 990 or business tax return, must have an independent audit report or a review report completed by an independent certified public accountant.
Organizations with gross revenue greater than $1,000,000 as indicated on your IRS Form 990 or business tax return, must have an independent audit report completed by an independent certified public accountant. All financial statements must be signed by an independent certified public accountant on the auditor’s letterhead.