COMPILATION, REVIEW, AND AUDIT ENGAGEMENTS

The degree to which a set of financial statements must be attested to by a CPA differs based on client need. Depending on the size, type and future plans for a business, lenders, investors, board of directors, or management may request certified financial statements to be compiled, reviewed or audited. The differences between types of financial statement presentations are described below.

Compilation: Presentation of financial statement information by the entity without the accountant's assurance as to conformity with Generally Accepted Accounting Principles (GAAP).  A compilation is the compiling of numbers to create a financial statement. No attestation procedures are performed. A compilation is limited to presentation in the form of financial statements, information that is the representation of management. No opinion or any other form of assurance regarding the accuracy of the information is rendered.

Review: A limited review consists primarily of inquiry and analytical review. It is not an audit nor does it furnish a basis for an opinion since there is no appraisal of internal control nor gathering of audit evidence. The review program includes reading minutes of meetings, reading interim financial information to see whether it conforms to GAAP, and obtaining management's written representations as to its responsibility for the information provided.

Audit:  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

Our team of talented accounting professionals will provide you with the type of financial statement presentation that you and your audience require.