What is a CPA?
A Certified Public Accountant (CPA) is an individual who has met the requirements of the state accountancy law and who holds a valid license to practice public accounting issued by the state Accountancy Board. (Public accounting consists of reporting on financial statements in part or in whole and performing tax and consulting work as a CPA or with a CPA firm.)

To be granted the initial license, a rigorous test must be passed, and education and experience levels must be attained. Licenses will not be renewed unless substantial continuing education requirements are met.

What services do CPAs provide?
Not all CPAs perform the same types and/or levels of service. However the most common services consist of accounting, auditing, tax, financial planning, and management consulting.

Ellis-Rinner, CPA, Ltd has chosen to offer accounting, auditing, tax, management consulting, and various other services as agreed upon by the firm and the client.

Why should you utilize a CPA?
A CPA is a very trusted, confidential advisor of individuals and businesses who is expected to uphold high standards. The following list (obtained from the American Institute of Certified Public Accountants) identifies some characteristics a CPA should possess:

• Continuing Education and Life-Long Learning - CPAs highly value continuing education beyond certification and believe it is important to continuously acquire new skills and knowledge.
• Competence - CPAs are able to perform high quality work in a capable, efficient and appropriate manner.
• Integrity – CPAs conduct themselves with honesty and professional ethics.
• Attuned to Broad Business Issues – CPAs are in tune with the overall realities of the business environment.
• Objectivity – CPAs are able to deal with information free of distortions, personal bias or conflicts of interest.

Why should you choose Ellis-Rinner, CPA, Ltd?
The goal of this firm is to provide clients with complete tax, accounting, and consulting services, enabling them to make sound business and personal decisions based on well-thought-out planning and professional guidance.

We assist clients with ways to increase efficiency and limit professional fees charged, so they can retain as much of their income as possible.

What are Compiled, Reviewed and Audited Financial Statements?

Compiled Financial Statements:
A compilation involves taking financial information provided by a company and compiling it into financial statement format without expressing any assurance that the statements are accurate, complete, or in conformity with GAAP (Generally Accepted Accounting Principles). Professional standards do require that we familiarize ourselves with the accounting practices common to your industry and acquire a general understanding of your company's transactions and how they are recorded, as well as read the financial statements for obvious errors.

There are certain situations when compilation reports are necessary or helpful. They are normally requested by a bank or bonding agent, or other agency through which you have or are trying to obtain financing.
Top

Reviewed Financial Statements:
A review is a higher level of service than a compilation. It results in the issuance of a report on a company's financial statements which provides limited assurance that the financial statements and footnote disclosures are reasonable. Review procedures entail making inquiries of company personnel and applying analytical procedures to financial data which are designed to identify unusual items or trends that may need explanation. Professional standards do require that we have a working knowledge of your industry and key aspects of your business.

Review statements are normally requested by banks, bonding agents, or other agencies with which you have or are trying to obtain financing.
Top

Audited Financial Statements:
An audit offers the highest degree of assurance regarding financial statements, resulting in a report that expresses an opinion that the company's financial statements present fairly, in all material respects, the entity's financial position and results of operations and cash flows in accordance with GAAP (Generally Accepted Accounting Principles).

An audit requires a study of internal controls and substantial testing of the underlying financial transactions and records. It includes confirmation with outside parties, physical inspection and observation, tracing transactions to supporting documents and a number of other tests. Professional auditing standards require that the auditor plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements.

Audited financial statements are requested, not only by third parties, but also by business owners and management seeking an in-depth examination of the company's financial record-keeping and reporting.
Top