Compilations, Reviews and Agreed-Upon Procedures Audits are not for everyone. Perhaps you have no outside lenders or regulators that require audited financial statements. Or, perhaps a lower level of service would be acceptable to them. Are you able to explain the various levels of service available in order to effectively negotiate with the users of your financial information for a lower level of service? Selden Fox can assist you in explaining the various levels of service and perhaps save you money in the long run. The following briefly describes the services that give less assurance than an audited financial statement, but possibly could satisfactorily fit your needs. Compilations...Presented in the form of financial statements, information that is the representation of management or owners without performing any procedures in order to express any assurance on the financial statements. Accordingly, no opinion is expressed by Selden Fox on your financial statements should you decide to have them compiled. Reviews...In a review of your financial statement, Selden Fox would perform inquiry and analytical procedures that would provide us with limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in accordance with generally accepted accounting principles, or if applicable, in accordance with another comprehensive basis of accounting such as the cash or tax basis of accounting. Difference between reviews and audits...The objective of a review differs significantly from the objective of an audit in accordance with generally accepted auditing standards. The objective of an audit is to provide a reasonable basis for expressing an opinion on the financial statements taken as a whole. A review does not provide a basis for expressing such an opinion because a review does not contemplate obtaining an understanding of internal control or assessing control risk, tests of accounting records, or obtaining corroborating evidential matter through inspection, observation or confirmation, and certain other procedures that are generally performed during an audit. Agreed-Upon Procedures...Here is a level of service that can be totally customized to your needs. This level of service does not have to encompass an entire financial statement. Rather, you can engage Selden Fox to perform specified procedures on any element, item or account of a financial statement. Because specified parties' needs vary widely, the nature, timing, and extent of the agreed-upon procedures may vary as well. Consequently, the specified parties assume responsibility for the sufficiency of the procedures since they best understand their own needs. Let's say that six months into your fiscal year, you lose your key inventory control employee. Perhaps at that time, you would like certain procedures to be performed on the perpetual inventory records. The type and extent of the procedures you would want performed is totally up to you. We can certainly provide advice regarding types of procedures that you could choose from. However, in an agreed-upon procedures engagement, the users of the report take full responsibility for the nature and extent of the procedures performed on any financial statement element. Under an agreed-upon procedures engagement, we would not express an opinion or negative assurance relating to the fair presentation of the specified element, item or account. Instead, our report to you would describe the nature and extent of procedures performed, and our findings and recommendations.

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