What Is an Attestation Service? 

Simply put, an attestation service is when an auditor provides a professional opinion and objective assessment on the financial statements of a company or business. Attestation services can provide valuable insights into a company's financial health to help get a true and accurate financial picture. If you currently use an accounting firm to prepare your financial statements, you already have the professionals you need for attestation as only a CPA can provide this service.

The three most common types of attestation services are audit, review, and compilation.

Audit

An audit is an in-depth type of attestation service, and it will provide an unbiased opinion on your financial statements. An audit provides the highest level of assurance and involves a thorough review of a company's financial records looking for fairness of financial statements and disclosures. The auditor expresses an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP).

Review

A review involves performing inquiries and applying analytical procedures to obtain evidence about the financial statements. The auditor expresses limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in compliance with Generally Accepted Accounting Principles (GAAP).

Compilation

A compilation is another type of attestation service that can be helpful in providing a general overview of your financial situation. A compilation does not involve performing any tests or procedures. The CPA compiles the financial statements from information provided by the client. The CPA expresses no opinion or assurance on the compiled financial statements.

Why Are Attestation Services Important? 

Without attestation services, accounting would be reduced to little more than guesswork. They play a vital role in the world of accounting, helping to provide essential information for making informed decisions. These findings can be used to make informed decisions about where to allocate resources, and how to improve financial performance. In short, attestation services provide valuable insights that can help your businesses to prosper. 

An experienced accountant can recommend the level of attestation services that are appropriate for your circumstances. 

Attestation Services With WWS, CPA 

At the offices of Wayne W. Stanforth, CPA, we are a full-service accounting and consulting firm that can prepare your financial statements as well offer complete attestation services. Contact us for a free consultation to learn which services are best for your business.