As a business owner, executive, lender, vendor or creditor, you want to fully understand the financial condition of an organization. From time to time businesses need to conduct a financial statement review or compilation when an audit is not required. It’s important to partner with a provider who can deliver an adequate level of assurance based on your needs. Whether it’s a compilation or review, our team provides the proper level of assurance in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA and other regulations. By partnering with us, you will receive a financial statement report that offers insight on your company’s financial position and satisfies your business partners.
In a compilation, a certified public accounting firm is hired to compile the financial data of a company. During the engagement, financial information from your accounting software will be extracted and placed into a financial statement using the GAAP framework. This is the standard format used by companies across the United States when sharing financial information. It’s important to note that during a compilation, no opinion is expressed about the accuracy or validity of financial information presented.
In a review, a certified public accounting firm is hired to evaluate the company’s financial statements using various analytical processes. It’s important to note that while a review is not as “intense” as an audit, it does require that a limited level of assurance be provided that the financial statements have no material modifications that need to be made. Unlike a compilation, a limited assurance opinion is being expressed about the accuracy of the financial information presented.
Interested in learning more about compilations and reviews? If your company has been asked to conduct one of these or if you would simply like more information, HTB wants to help. For additional information, please click here to contact us.