Financial Statements
We Ensure Statements are Accurate & Meet Applicable Standards
Compilation Engagement
A Compilation Engagement report is a compilation of financial statements using financial information or data supplied by the client. This type of engagement is appropriate only where the client and other users:
- Do not need financial information conforming to generally accepted accounting principles.
- Do not require audit or review assurance.
- Understand the statements may not be appropriate for general purpose use.
The methods used to prepare a Compilation Engagement report are not designed to enable any licensed public accountant to provide any assurance on the reliability of the compiled information. To warn those reading the report of this lack of assurance, a "Compilation Engagement" is included that states no review was performed on the information and that the information may not be appropriate for use by whoever is reading the report.
Compilations are frequently used to prepare reports like financial statements to be used exclusively by a company’s management or for income tax purposes.
Review Engagement
Business owners and individuals need a certain level of assurance their financial statements are accurate and meet applicable standards. A limited review engagement involves preparing and reviewing financial statements to determine whether they’re plausible or to be believed. Once an accounting professional reviews financial statements and is satisfied they’re not misleading, they issue a standard report that prefaces each financial statement.
When performing a review, an accountant remains independent from the client, so they must have sufficient knowledge of the client’s industry to make intelligent enquiry and assessment of the information obtained. The review can entail enquiries, analytical procedures, and discussion with responsible client officials.
