Attest Services: Reviews & Compilations
Many businesses require and/or want a reviewed or compiled financial statement to help management in presenting their financial statement and/or for requirements of lenders and creditors. Only licensed CPA’s operating within a CPA firm can provide these attest services.
Reviews
Reviews are often needed for regulatory reasons or for requirements of creditors or lenders. A review is a service where a CPA obtains limited assurance that there are no material modifications needed in order for the financial statement to be in conformity with the applicable accounting framework. A review is less in scope than an audit and less expensive. However, reviews are more expensive than compilations.
Compilations
Compilations are prepared for either third party use or management use only. They provide management help in presenting their financial statements and are based on the information provided by the client. Compilations are related to an accounting service called write-up. CPA’s convert the data provided by clients into financial statements without providing any assurance or auditing the data. Compilations are less in scope than a review and an audit and less expensive.
Reviews
Reviews are often needed for regulatory reasons or for requirements of creditors or lenders. A review is a service where a CPA obtains limited assurance that there are no material modifications needed in order for the financial statement to be in conformity with the applicable accounting framework. A review is less in scope than an audit and less expensive. However, reviews are more expensive than compilations.
Compilations
Compilations are prepared for either third party use or management use only. They provide management help in presenting their financial statements and are based on the information provided by the client. Compilations are related to an accounting service called write-up. CPA’s convert the data provided by clients into financial statements without providing any assurance or auditing the data. Compilations are less in scope than a review and an audit and less expensive.