Creditors, stockholders and investors often need assurance that the financial statements accurately represent the true financial position of a company.
Creditors, stockholders and investors have different levels of risk tolerance, so we provide two levels of assurance to help meet your needs.
A review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquires we make of your company’s management team.
A review does not require us to evaluate your company’s internal controls or physically inspect assets or verify data with third parties. 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.
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 do not require inquiries of management or analytical procedures. Instead, we rely on a general understanding of your business, and our knowledge of accounting principles.
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.
Understanding each report’s weaknesses and strengths can help you choose the most appropriate one.