Financial Statement Preparation

Financial Statement Preparation: Compilation, Review and Audit Services

Clients frequently need financial statements for internal purposes or for presentation to a third party. Certified Public Accountants provide three levels of “attestation” services. We discuss the needs and choices with each client to determine which level of reporting is best suited to their needs.

Generally, a Compilation will satisfy most of the financial statement needs of a client. It involves the least amount of time to complete and is the least intrusive process of the three levels.

The next highest level of financial statement presentation is the Review. This level requires more testing by the CPA and a greater level of assurance for the user of the financial statement.

The highest level of financial statement presentation is the Audit. Since the Sarbanes/Oxley Act was passed by Congress, the Audit has changed substantially in its scope, depth and level of assurance. The resulting increase in work required by a CPA firm has led many clients and other users of the financial statements to request a Review rather than Audited Financial Statements.