Audits, Reviews and Compilations

An audit proves to third parties that your financial statements are accurate. It provides the highest level of assurance that CPAs can attest to and requires extensive information to form an opinion. Audits are typically needed for publicly traded companies, attracting new investors and potential buyers, obtaining government funding and large business loans for companies and negotiating potentially lower interest rates.

A financial statement review is a step above a compilation, but generally less labor-intensive and therefore less expensive than an audit. Rather than verifying source documents, a CPA performs basic analytical procedures and inquiry to double check that the financial statements make sense. Reviews are used for growing businesses seeking larger and more complex financing and credit or attracting new investors and potential buyers.

Compilations, or compiled financial statements, are the most basic level of financial statements. They do not provide any assurance and differ significantly from audits and reviews. Compilations do not perform any analytical procedures or provide an understanding of the entity’s internal control, fraud risk, or accounting records. Compilations are generally used for internal management decisions, reporting to existing investors, loan applications for small companies with straightforward transactions, and new business insurance policies.

Beyond the traditional financial statement compilation, review and audit, our team works with businesses who are looking to sell or buy, strengthen their internal controls and financial processes or other attestation services, including:

• Buyer and Seller Side Due Diligence
• Quality of Earnings Reports
• Agreed-upon Procedures
• Internal Control Assessments
• Financial Forecasting and Projections
• Liquidation Assistance