Financial Statements: Audits, Reviews & Compilations

Financial statements provide the fundamental basis for evaluation that investors, banks and shareholders use when assessing the financial state of your business. Depending on the need, we provide reports based on three different levels of detailed review of your financial statements: audits, reviews and compilations. We can help you decide the right level of service so that you can make sure you are not getting less or more than you need.

Audit

An audit provides the most detailed review of your financial statements and therefore, the highest level of assurance. The goal of an audit is for us to give our opinion as to whether or not your financial statements have been prepared in accordance with the proper financial reporting framework. An audit enhances the degree of confidence that your financial statements are as accurate as possible. During an audit we evaluate your company’s internal controls and if necessary verify data with third parties.



Review

A review provides a mid-level of assurance about the reasonableness of the financial condition presented in the financial statements. It is less detailed than an audit, but more involved than a compilation. During a review, we perform analytical procedures that provide a better understanding of relationships among certain financials. We may also contact your company’s management team. If we find any inconsistencies or questionable data, we may need to perform additional procedures. A review is a good way to garner the advantages of a CPA’s technical expertise without the time and expense that an audit requires.

Compilation

A compilation provides the minimum review of your company’s financial statements. A compilation involves gaining a general understanding of your business, the accounting principles used, and the financial reporting system used and then presenting the findings in a report. We will not express any assurance about the accuracy of the financial statements and our report will emphasize that the service performed was a compilation. The compilation report may be a full disclosure report with complete footnote explanations of certain amounts and policies contained in the financial statements, or these disclosures may be omitted. Omission of this information is not permissible under the other levels of service.

If you are need of a review of your financial statements, we can first help you determine what type of report will best meet your needs. We base this assessment on the requirements from your company’s bank or other parties, as well as any time and budgetary constraints you may have. Don’t hesitate to call us today for a free evaluation.


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