Financial Statement Review and Compilations

While not as thorough and extensive as a financial statement audit, a financial statement review provides limited assurance that the independent auditor is not aware of any material modifications to the financial statements. The required procedures in a financial statement review include inquiry and analytical procedures. A review may generally be appropriate when an organization is obligated to provide financial information to a third party and a financial statement audit is not required.

In a compilation engagement, RICHARD CPAS compilation report is prepared based solely on the financial information that is provided by the client. RICHARD CPAS may recommend financial statement adjustments if amounts appear incorrect, however, a compilation engagement does not provide any level of assurance that the financial statements are in compliance with U.S. GAAP. A compilation may be useful when your organization needs a financial overview in order to make business decisions.