Audited, Reviewed, and Compiled Financial Statements

Quality financials done quickly.

Reviewed Financial Statements

Reviews provide limited assurance that financial statements are free from material misstatement and conform to GAAP. They involve:

• Starting with internal financial data.

• Using analytical procedures to spot unusual trends or items.

• Asking about anomalies and assessing accounting policies.

• Reviewed statements must include footnote disclosures and a cash flow statement.

Specialized Attest Services

Our team offers agreed-upon procedures and Yellow Book audits for unique client requirements.

Prepared and Compiled Financial Statements

Compiled financial statements involve an accountant organizing management’s financial data into a format that conforms to GAAP (or another framework). These statements:

• Provide no assurance of accuracy or conformity to GAAP.

• May include optional footnotes and cash flow information.

• Come with a brief report signed by the CPA.

Prepared financial statements are similar to compiled ones but:

• Don't require a CPA report

• Instead, include a disclaimer on each page stating no assurance is provided.

• Are often used by owners who previously relied on "management-use-only" financial statements, which are no longer allowed under SSARS 21.

Audited Financial Statements

Audits are considered the gold standard in financial reporting, offering reasonable assurance that the statements are accurate and conform to GAAP.

• Auditors perform extensive procedures, including:

• Evaluating internal controls.

• Verifying information with third parties (e.g., customers, lenders, attorneys).

• Observing inventory counts and inspecting assets.

• Assessing substantive audit evidence.

• Many lenders and bonding agents require audits for large private companies.