We work closely with clients throughout our engagement and the year, while maintaining independence, to ensure proper reporting standards and internal controls are being upheld while clients remain productive. Navigating industry standards can be challenging, so we encourage our clients to communicate their needs and goals periodically so we can effectively achieve their desired outcome.
Reviews require that we perform analytical procedures in addition to the procedures described below for a compilation. A report is then issued stating that a review has been performed in accordance with AICPA professional standards. A review is less in scope than an audit, and is mainly concerned with becoming aware of any material modifications that should be made in order for the statements to be in conformity with GAAP. Financial statement reviews are often performed for businesses with bank loans or investor loans but do not require an audit.
In a compilation, we must comply with certain basic requirements of professional standards, such as having knowledge of the client’s industry and applicable accounting principles, and reading the financial statements to determine whether there are any obvious departures from GAAP. A report on the financial statements is issued that states a compilation was performed in accordance with AICPA professional standards, but no assurance is expressed that the statements are in conformity with GAAP. Compilations often prepared for privately held entities that do not need a higher level of assurance.