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 two levels of assurance to meet your needs.
- Limited Assurance
Less extensive than an audit, but more involved than a compilation, a review engagement
consists primarily of 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.
Why might a business request a review engagement? It can be a good middle ground, providing
the advantages of a CPA's technical expertise without the work and expense of an audit.
- Lowest Level of Assurance
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
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.
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.