Audits, Reviews and Compilations

There are times when a lender or other third party will request your business’s financial statements. Recipients of these reports will gain varied levels of assurance based on the type of information provided.

Our skilled certified public accountants can demonstrate the credibility of your company’s financial statements by providing you with one of the three levels of financial statement assurance services; audit, review, or compilation.

Audit

Providing the highest level of assurance, an audit enhances the degree of confidence that the users, such as lenders or investors, can place in your business’s financial statements. It is a thorough, systematic examination of your financial records that serves to determine whether the information shown correctly reflects your company’s financial position.

Review

A review is a broad examination that provides limited assurance to the intended user showing that no material modifications need to be made to the financial statements to meet generally accepted accounting principles. Although this process provides an evaluation of your business’s financial records, it is narrower in scope than an audit in that it is generally limited to the analysis of procedures and an assessment of management.

Compilation

Primarily for internal use, a compilation assists your business’s management in presenting financial information in the form of financial statements. During a compilation, your CPA will help you prepare the necessary financial reports without issuing his or her opinion. Because a compilation’s scope is very limited, it will not provide assurance that the statements are free from error or adhere to generally accepted accounting principles.

Determining What Report Will Best Fit Your Business’s Needs

Making a choice between an audit, review, and compilation will ultimately come down to the needs of your business. Our qualified New York accountants can carefully review your company’s objectives and determine what level of financial reporting best fits your needs. To learn more, we welcome you to contact Rosen Kuslansky today by calling (212) 675-2600.