At FHK, our approach is to deliver a quality audit that uses a risk-based approach tailored to the client’s specific industry, operational structure and size.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Assurance pix
Assurance pix
Assurance pix


The accounting profession has three distinct financial statement services based on levels of assurance—audit, review, and compilation. Audit is the highest level of assurance and is discussed more fully in Audit Services.

A review engagement provides limited assurance that no material changes are needed for the financial statements. Review procedures generally are limited to inquiries of company personnel and analytical procedures applied to financial data. These procedures provide the accountant with a reasonable basis for expressing limited assurance that no material modifications need to be made to the financial statements in order for them to comply with generally accepted accounting principles (or another comprehensive basis of accounting). Since review procedures do not include consideration of the company’s internal controls or the gathering of competent evidential matter, an opinion may not be expressed by the accountant. The review engagement may not be relied upon to disclose all significant matters that would surface in an audit.

A compilation engagement provides no assurances. A compilation of financial statements is limited to presenting, in the form of financial statements, information that is the representation of management or owners. Accordingly, the accountant is not required to make inquiries or perform analytical procedures to verify or review management-furnished information. The FHK team has decades of experience providing the above levels of service for various businesses. We can help you determine the service you need.


Agreed-upon procedures (AUP) engagements are used when audit or review procedures are not sufficient to provide the services or answers required. AUP engagements are procedures performed that are agreed-to by the client to satisfy a required need or concern. AUP results are presented in a report format that describes the procedures performed, the results found and the suggested recommendations for correction. Examples of AUP procedures include:

ACH compliance audits
Asset and liability management support
Interest rate risk reviews
Liquidity management reviews
Internal operational reviews
Internal control reviews
Supervisory committee exams
Directors’ exams
Loan review
And more