Many clients do not require an audit of their financial statements, but still desire professional assistance with the preparation of their financial statements. For those clients, certified public accountants offer two levels of service which are generally less time consuming and therefore less costly than an audit.
A "review" is a service that is narrower in scope than an audit. It involves the use of analytical and inquiry procedures that, when successfully completed, allow us to state we are not aware of any material modifications that need to be made for your financial statements to be in accordance with generally accepted accounting principles. The level of assurance provided by this service is becoming more widely accepted by regulators and financial institutions as a cost-effective means to meet their needs and that of the client.
A "compilation" is a service involving the preparation of financial statements based on information provided by the client. The statements are prepared in accordance with professional standards using the appropriate format for the client's industry. However, unlike an audit or a review, the certified public accountant does not render an opinion or any other form of assurance on the financial statements. This service is the most cost effective and should be considered by clients who don't need to report to outside authorities or financial institutions, yet want professional assistance with the preparation of their financial statements.