We view our role in the financial reporting process as an opportunity to provide value added, constructive solutions for maximizing your company’s profitability and efficiency. We provide financial reporting on two levels of assurance:
A review engagement consists primarily of analytical procedures we apply to financial data, and various inquiries we make of your company’s management. If the financial data or supporting information appears inconsistent or questionable, we may need to perform additional procedures.
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 accounting principles generally accepted in the United States. Reviewed financial statements must include all required footnotes and other disclosures.
A review provides the advantages of a CPA’s technical expertise without the work and expense of a full audit.
A review is often acceptable for lenders, investors and management and serves as a cost-effective means of obtaining a reliable snapshot of company performance.
A compilation is an assembly of the client’s data in financial statement format. Our compilations examine the data in conjunction with business procedures to provide a clearer picture of our clients’ financial operations.
In compiling financial statements for a client, we present information that is the responsibility and representation of management and expresses no opinion or assurance on the statements.
Compilations do not require inquires 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 a minimum requirement of their lending covenants.
Understanding each report’s unique strengths and weaknesses
can help you choose the most appropriate one.
Please contact us if you have any questions about which type of report is right for your business.