Financial Statements: Choose Your Assurance Level
When stockholders, creditors, and private investors seek assurance that your financial statements accurately represent your company’s financial position, we offer two levels of assurance to meet your needs.
Review - Limited Assurance
A review involves analytical procedures and inquiries to your management team. Without necessitating an evaluation of internal controls or verification with third parties, it provides limited assurance that your financial statements adhere to Generally Accepted Accounting Principles (GAAP). This approach is a valuable way to leverage CPA expertise without the need for a more detailed examination.
Compilation - Lowest Level of Assurance
In a compilation, we present information as a “representation of management” without expressing an opinion or assurance on the statements. This level doesn’t involve inquiries to management or analytical procedures but relies on our understanding of accounting principles and your business. Compilations are often required by banks for lending covenants.
Selecting the appropriate report depends on specific circumstances and requirements, whether from a client’s bank or other parties, as well as your budget. Understanding the strengths and weaknesses of each report will guide your decision. If you have questions or need assistance, please don’t hesitate to contact us.
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