Henry Horkheimer, MD, is considering expansion of his office as a result of adding a new doctor to his family medical practice. Dr. Horkheimer knows that his business is profitable, but he does not produce regular financial statements, nor does he possess the technical knowledge to do so. Although he is financially savvy enough to know that he needs financial statements to obtain financing to expand his business, he is completely unsure as to what services he needs or even what is available. He has asked you for advice.

Required:

Consider Dr. Horkheimer's need for financing and write a memo outlining the pros and cons of four services an accountant could provide: audit, review, compilation, and preparation of financial statements. Conclude your memo with a recommendation for what you believe would best suit Dr. Horkheimer's needs.