Review and Compilation

Even if you have never worked with an accounting professional, you probably have prepared financial statements for your business, and you may have documents and procedures in place designed to track and measure the financial performance of your enterprise.  Whether you are concerned about compliance with requirements of banks and other lenders, suppliers, regulatory agencies or others, or need some assistance in using financial statements for your own business or investment decision-making, you will want some level of assurance regarding the accuracy and completeness of your financial statements.  Our Review and Compilation services give you the tools you need now and in the future, for timely and accurate financial statement reporting.

Review.  In a financial Review, our professionals evaluate your company's financial statements using several methods and procedures.  We interview management at your company, employ financial analytics, and use what we know about your industry and your business to develop a complete picture.  In our management interviews, we inquire about your company’s accounting principles and practices, your recordkeeping practices, accounting policies, the actions of the board of directors, and whatever changes have occurred in the business operations or in other activities for the time period of the review. The analysis portion of the review will identify anything unusual that may need further inspection or explanation and all footnotes must be included. If you are creating a financial report for a third party, like a lender, a Review is a helpful tool.  A Review is also useful for business owners who do not manage their own companies.  If you require a greater degree of assurance, an “Audit” may be necessary rather than a Review.

Compilation. To prepare effective and meaningful financial statements, our Compilation service can assist. In our Compilation process, we assemble all of the relevant financial data from your accounting records and then we prepare and present the information in the form of financial statements that provide information gathered from management or business owners without any specific assurance. In a compilation, your management may elect to omit footnote disclosures and this will be stated in the Compilation Report. The information we gather may also help in determining your need for additional accounting services. Especially for private companies, a Compilation will provide the assistance you need to prepare meaningful financial statements.

Let us assist you in evaluating your financial reporting needs and determining which level of service meets your requirements.

Sample Reports:

Accountant’s Compilation Report

Business Owner or Stockholders and Board of Directors
[your company]

We have compiled the accompanying balance sheet of [your company] as of [date], and the related statements of income, retained earnings, and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

A compilation is limited to presenting in the form of financial statements information that is the representation of management (owners). We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them.

Mahmoud & Associates, CPA
[date]

Accountant’s Review Report

Business Owner or Stockholders and Board of Directors
[your company]

We have reviewed the accompanying balance sheet of [your company] as of [date], and the related statements of income, retained earnings, and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of [your company].

A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.