Review and Compilation
Choosing the appropriate level of financial reporting for a particular business need is critical. So whether you need financing, a loan, or information for potential investors, we can help you decide if a full audit is needed or if a review or compilation will suffice.
While the lowest level of assurance is generally acceptable, there may be times, such as preparing for the sale of a business, when an enhanced report is preferable. Our team can explain your options and advise you on the best route for reaching your business goals.
The differences between a review and a compilation are outlined below.
Review
A review is considered the base level of CPA assurance services. It is intended to provide lenders and other outside parties with limited assurance on the accuracy of the financial statements. CRC’s financial statement review service consists of analytical procedures, inquiries, and other procedures to obtain limited assurance.
Typically, a review is appropriate as a business grows and is seeking higher and more complex levels of financing and credit. It is also useful when you, as the business owner, are seeking greater confidence in your financial statements for the purpose of evaluating results and making key business decisions.
Compilation
A compilation provides no assurance on the accuracy of the financial statements because it is based on financial data provided by management. CRC’s compilation services include presenting the financial information in the form of statements that comply with accounting standards. A compilation is typically appropriate when initial or lower amounts of financing or credit are sought, or significant collateral is already in place. Though no assurance is provided, outside parties may appreciate your association with a CPA.