When a growing business finds it necessary to report its financial position to lenders, bonding companies, or for any other myriad of reasons we offer three levels of financial reporting services that will meet your company’s needs: Compilation, Review and Audit.
A Compilation is the simplest type of report. It represents that the financial statements have been read and understood by the CPA, and identifies any known departures from Generally Accepted Accounting Principles (GAAP) or Other Comprehensive Basis of Accounting (OCBOA). It does not, however, provide assurance that the financial statements are free of misstatements or errors. This type of report is most typically used to obtain small loans, to comply with various covenants or contracts, or to report interim financial information.
A Review is often needed for companies who must report their financial results to third parties such as creditors, regulatory agencies or business owners. During a review, we interview company management and personnel as needed. We use analytical procedures to conduct both trend and industry comparative analyses, to identify unusual items that “red flag” anomalies in the financial statements, which may require further analysis or adjustment. The higher level of analysis a review provides justifies limited assurance that changes to the financial statements are not necessary to be in conformity with GAAP.
An Audit report requires the most in-depth analysis and field work by the independent accountant, and includes the highest level of assurance on the integrity and consistency of the financial statements. An audit report provides positive assurance that financial statements are fairly stated in accordance with GAAP on a basis consistent with prior years—in other words, that your numbers are right.