COMPILATIONS & ASSURANCE
A closer look at your financials
Many businesses are required to provide financial statements with an external CPA's report to lenders, investors, or other stakeholders. The content of these reports depends on the work performed by the external accountant.
The most basic engagement, wherein your financial information is compiled into a specified form according to the organization's basis of accounting.
No testing is performed and no assurance is given over the accuracy of the information.
A review engagement provides limited assurance through discussion, inquiry and analysis.
Financial statements are prepared using an applicable financial statement framework.
An audit engagement provides reasonable assurance that the financial statements are free from material misstatement.
During an audit, the external accountant performs various procedures, including data sampling to gain assurance over the financial information.