Compile Financial Statements

No matter what types’ organizations, private, public, or non-profit, we can help you Compile Financial Statements to accurately show your performance to your shareholders or/and people with an interest in your company. Compiled financial statements enable management to make business decisions, government authorities to evaluate immigration application, creditors to evaluate loan applications, and individuals with information to make investment decisions.

Compiled financial statements are usually prepared in accordance with Generally Accepted Accounting Principles (GAAP) of USA, which are the standards issued by the American Institute of Certified Public Accountants (AICPA), but they may also be prepared on other comprehensive basis of accounting, such as cash basis, tax basis, IFRS, or Financial Reporting Framework for Small- and Medium-Sized Entities, depending on the needs of the users of the financial statements. Compilation standards allow the organization to omit note disclosures as long as there is no intent to mislead the users. This is the only type of financial statement that allows omitted disclosures. You can call us for more consultation about compilation of financial statements. .

Review Financial Statements

Reviewed Financial Statements consists of the auditor inquiring of management personnel in order to verify the financial records of the company. Unless deemed necessary, the accountant is not required to obtain any independent corroboration to substantiate the personnel presentations. In contrast, as part of a certified audit, the auditor must obtain independent evidence to substantiate the assertions made by the association’s employees and management.

In addition to a big difference in detail and thoroughness, Reviewed Financial Statements can cost hundreds of dollars less than an audit. A review does not require the auditor to formulate an opinion as to the records as is required under standard rules for an audit. The purpose of reviewed financial statements is the expression of limited assurance that there are no material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles.

The level of assurance provided by reviewed financial statements is significantly less than that of an audit.  In an audit, the auditor’s report provides assurance that there are no material modifications to the financial statements to be in conformance with GAAP.  In a review, the accountants’ report is one of negative assurance where the accountant attests that nothing has come to the attention of the accountant causing such financial statements to be misleading or otherwise incorrectly stated.

Audit Financial Statements

The highest level of assurance in regards to financial statements is audited financial statements. Audited Financial Statements is the audit of the financial statements of a company or any other legal entity (including governments), resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented. Financial audits are typically performed by CPA firms or practicing accountants due to the specialist financial reporting knowledge they require. Audited financial statement is one of many assurance or attestation functions provided by CPA firms, whereby the CPA firm provides an independent opinion on published information. Many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors.

Audited financial statements exist to add credibility to the implied assertion by an organization’s management that its financial statements fairly represent the organization’s position and performance to the firm’s shareholders (interested parties). The principal stareholders of a company are typically its shareholders, but other parties such as tax authorities, banks, regulators, suppliers, customers and employees may also have an interest in ensuring that the financial statements are accurate.

The CPA designs the audit to reduce the possibility that a material misstatement is not detected by audit procedures. A misstatement is defined as false or missing information, whether caused by fraud (including deliberate misstatement) or error. “Material” is very broadly defined as being large enough or important enough to cause shareholders to alter their decisions.

Audited financial statements exist because they add value through easing the cost of information asymmetry, not because they are required by law. For example, a privately-held company that does not issue securities on a public exchange might engage a firm to audit its financial statements in order to obtain more desirable loan terms from a financial institution or trade accounts with its customers. Without the audit, the lending party would not have assurance as to whether or not the company’s financial position is accurate, and in turn, the lender could price protect against this information asymmetry.