Proven Expertise in Compilations and Reviews
As a business owner, you may be accountable to creditors, private investors, and shareholders, all of whom are interested in ensuring that the company’s financial statements accurately represent the true financial position of the company.
There are three types of CPA prepared financial statements:
Compilations. The first level of service is the compilation. There is no verification that the numbers presented in the statements are accurate and the financial statements produced are for management and third-party use. They are however presented in accordance with generally accepted accounting principles (GAAP), tax basis, or other comprehensive basis of accounting.
Reviews. More involved than a compilation, but not as comprehensive as an audit, reviews provide “limited assurance.” Key personnel are interviewed about the company’s accounting policies and procedures, industry, operations, and financial statements. A review report is issued as well.
Audits. Audit services are the highest level of service provided. An auditor works closely with key personnel to gain knowledge of internal control systems (“checks and balances”). Verification and substantiation procedures are performed in accordance with Generally Accepted Auditing Standards (GAAS).
Audit, Review, or Compilation?
You may be wondering which one is best for your business. The answer depends on the level of assurance or financial accuracy that you want. For instance, you may decide a compilation is all you need this year, but in subsequent years, you may decide that a review provides better information about your financials and enables you to make better decisions about the future growth of your company. Audits include internal control systems review and require more work, costing the most of the three options. The CPA Group currently does not provide audit financial services.
We Look Forward to Helping Your Business Achieve Financial Success!
Whether your business or organization needs a compilation or review, our experienced team of CPAs, accountants, and tax professionals is here to help.
Not sure which level of assurance your business needs? Contact us using the form below.