Simple Audit Review Compilation
Included with the financial statements that are prepared is a report that is called a Notice to Reader stating that the.
Audit review compilation. When it comes to cost the review is an expensive process as compared to the compilation whereas the audit is more expensive than a review. Inquiry and analytical procedures are not performed. If your business receives a request for audited or reviewed financial statements discuss the request with us to determine what the lender investor or.
All threecompilation review auditare forms of attest services which help an organization tell its story about its financial position and performance as explained through financial statements. There are three levels of financial statement services offered by CPAs. Compilation Engagement Notice to Reader This type of engagement involves the preparation of financial statements by a CPA.
The level of assurance that the financial statements of a client are fairly presented is at its highest for an audit and at its lowest none at all for a compilation with a review somewhere in between. In all three cases the auditor begins with the account balances provided by management but an audit. An audit provides assurance that an organizations financial statements are free of material misstatement and are fairly presented based upon the application of generally accepted accounting principles.
A compilation provides no level of assurance that the financial statements are in accordance with GAAP. Conversely in a review the auditors opinion is expressed as negative assurance assertion in the report provided. The three most common types of assurance services are audit review and compilation.
However the compilation report must disclose that fact. The processes and procedures required for an audit review and compilation all differ significantly which means that the costs will differ significantly as well. A compilation takes the least amount of time which makes it the lowest cost option for your business.
Inquiry and analytical procedures are performed. To help clients prospects and others Selden Fox has provided a. The Bottom Line on Audits Reviews and Compilations.