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New information received from an auditor indicates that preparing statements according to GAAP implies audited financial statements.
Refer to your Bylaws.
A best practice would be to have some sort of external review of annual financials:
Audit engagement:
•objective examination and evaluation of financial statements to make sure fair and accurate representation; includes an opinion and can include review of internal controls
Review engagement:
•performed by an accountant but with a higher focus on verification and analysis than Notice to Reader
Notice to Reader:
•compilation of financial statements provided by management prepared by accountants
•does not provide assurance on the correctness of the financial statements; meant to provide level of trustworthiness
