Compilations & Reviews
Assurance to meet your needs
Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company. Your stockholders, creditors, or private investors have different levels of risk tolerance, so we provide two levels of assurance to meet your needs. Should you grow to the point of needing a certified audit, we can assist you by transitioning you to firm specializing in financial audits.
Should the time come when you are positioning your business for sale, a history of independently prepared financial statements (Compilations) may help reduce the perceived risk in the eyes of the prospective buyer which in turn may increase the value of your business.
Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company’s management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review doesn’t require us to study and evaluate your company’s internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: “We are not aware of any material modifications” for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.
Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA’s technical expertise without the work and expense of an audit. For some companies a review is required by their insurance or bonding company. It may also be required by a lender or a customer.