COMPILATION AND REVIEW OF FINANCIAL STATEMENTS

Many businesses do not require an independent opinion on their financial statements. In those instances, we may conduct a compilation or review of the financial statements. In compiling financial statements, we perform a task comparable to what a controller would do if the business had one. He prepares monthly, quarterly or annual financial statements but offers no assurance as to whether material changes are necessary because he has simply put the data into financial statement form.

However, we take a "professional look" at the statements to decide whether the business needs other accounting services, like help in adjusting the books.

A business may also engage us to review its statements and to issue a report giving a limited degree of assurance. After applying inquiry and analytical procedures defined by the AICPA, we are permitted to give limited assurance that material changes are not necessary to the statements. In reliability or usefulness, a review falls between the no-assurance compilation and the extensive assurance of an audit.