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Financial Statements |
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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 the following levels of assurance to meet your needs.
Review – Limited Assurance
Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures applied to the financial statements, along with inquiries of your company’s management team.
A review does not require us to evaluate internal controls, verify data with third parties, or physically inspect assets. Instead, the review report expresses limited assurance in the form of the statement: “We are not aware of any material modifications…” for the financial statements to conform with GAAP.
A review engagement can be a practical middle ground, offering professional insight without the cost and scope of a full audit.
Compilation – Lowest Level of Assurance
In a compilation, financial statements are presented as the representation of management and express no opinion or assurance. This service does not include inquiries or analytical procedures.
Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
Each type of financial statement report may suit specific circumstances, depending on requirements from your client's bank or other parties, as well as meet budgetary needs.
Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Call if you have questions about which type of report is right for you, complete the form below for a consultation or use the scheduling link to book an appointment with our team.