When it comes to financial reporting, businesses and organizations often require attestation services, but there’s often confusion about what these services actually entail. Many people think they are undergoing an audit when, in reality, they are receiving a different level of service.

There are two main types of benefit plans: defined contribution plans and defined benefit plans. A defined contribution plan, such as a 401(k), ESOP, or profit-sharing plan, specifies the amount an employee contributes “up front,” but the final amount they can withdraw depends on market performance and is not guaranteed.

To properly value a business, one must first look into the past. This means all historical financial statements, such as income statements, balance sheets, statements of cash flows, and tax returns, should be evaluated to understand what the business has done historically.