COMPILATION

A compilation is presenting in the form of financial statements information that is the representation of management without undertaking to express any assurance on the statements. 

Key Benefits

•  Lower cost for service
•  Financial statements presented in an understandable form and with notes attached with explanations.
•  Can be used if for internal use only or not required by outside parties.

review

A review of financial statements is where I would perform inquiry and analytical procedures that provides me with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statements for them to be in conformity with generally accepted accounting principles (GAAP) or, if applicable, with an other comprehensive basis of accounting (OCBOA).

Key Benefits

•  If the organization is required to give their financial statements to outside parties, a review gives the reader a higher standard than just compiled financial statements.
•  The objective of a review differs significantly from the objective of a compilation. The inquiry and analytical procedures performed in a review should provide   me with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the financial statements.
•  No expression of assurance is contemplated in a compilation.

Audits

An audit of the organization is to provide a reasonable basis for me to express an opinion regarding the financial statements taken as a whole.  A review does not provide a basis for the expression of such an opinion because a review does not contemplate obtaining an understanding of internal control or assessing control risk; tests of accounting records and of responses to inquiries by obtaining corroborating evidential matter through inspection, observation, or confirmation; and certain other procedures ordinarily performed during an audit.

Key Benefits

•  If the organization is required to give their financial statements to outside parties, an audit gives the reader a higher standard than just reviewed financial statements.
•  An understanding of the internal control system is obtained and a formal written reportable conditions report is given.  The report specifies the weaknesses in the internal control and gives suggested corrective action to be taken.
•  Many nonprofit organizations that apply for grants from foundations and organizations require an audit report from an independent certified public accountant.
•  In addition, many profit businesses that have loans with financial institutions require an audit.
•  If you need an audit under OMB Circular A-133, I can also assist you.