Review or Compilation of Financial StatementsContact Us
Review of Financial Statements
Novak Birks, P.C. can provide “limited assurance” that financial statements require no material modification for them to conform to a comprehensive basis of accounting. These reviews provide a limited level of assurance on financial statements. As with an audit, the assurance is based on reasonableness, not exactness. A review, however, is substantially less in scope than an audit. As with an audit, the CPAs must be independent of having any financial involvement with the organization.
Review procedures typically involve inquiries of company personnel and analytical procedures, including comparison of current year with prior period financial data to identify unusual items or trends. The CPA obtains information about the organization, including its methods of operation and its products or services, record keeping, changes in business activity, and actions of the board of directors.
Compilation of Financial Statements
Novak Birks, P.C. provides a compilation of financial statements, which is simply a CPAs compiling of an organization’s financial statements based on management’s representations. With the compiled financial statements, the CPA issues a report providing no assurance about the financial statements. The data is merely arranged by the CPA into a standard financial statement format.
To compile the financial statements, however, the CPA must obtain an understanding of the adequacy of the organization’s accounting system from which the financial statement data comes and whether the compiled financial statements are appropriate in form and free from obvious material errors.
Historical and forecasted company financial statements, as well as personal financial statements, can be audited or compiled.