Reviews
A review engagement involves 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.
Compilations
In compiling financial statements for a client, we present
information that is the "representation of management" and expresses no
opinion or assurance on the statements. Compilations don't require
inquiries of management 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.
Which Report Should You Use?
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. Please call if you have
questions about which type of report is right for you.
