Although an audit is the classic method of evaluating a company's financial situation, it is not necessary in many cases. Frequently, a compilation or review of a company's financial statements is all that is needed. The cost of these services can be significantly less than those of a traditional audit.
A compilation is a presentation of financial statements and other information that is the representation of the management or owners. We do not express an opinion or give any other form of assurance. We read the statements and issue our compilation report on them.
Compilations are useful when clients need assistance in preparing their monthly or quarterly statements. A compilation is essentially what the company would provide itself, if it had the in-house staff with an expertise in financial statement preparation. We prepare the company's financial information in statements appropriate for that particular industry. We do not establish whether these statements conform with generally accepted accounting principles.
A review is more comprehensive than a compilation. We determine, through inquiry and analysis, whether a company's financial statements conform with generally accepted accounting principles. Reviews are useful when clients, creditors or others need limited assurance that the financial statements require no material modifications.