REVIEWS AND COMPILATIONS
Stockholders, creditors and private investors often need assurance that the financial statements accurately represent the true financial position of a business. At Sol Schwartz & Associates, we provide assurance through three types of financial statement services: audits, reviews and compilations. Reviews and compilations are a significant part of our assurance services and can help you identify and fix problem areas in your operations.
The difference in the levels of assurance:
The audit provides the highest levels of assurance. In an audit, we obtain sufficient information to express reasonable assurance on the fairness of the presentation of your financial statements. We pull source documents, send confirmations on cash and debt balances, walk through your internal controls, etc.
A review provides limited assurance, as it requires less evidence than an audit. While the review is more involved than a compilation, it consists primarily of analytical procedures and various inquiries we make of your management team. A report expresses limited assurance by stating that we are not aware of any material modifications.
During a compilation, we prepare or assist in the preparation of your financial statements. Any evidence we obtain as a result will be incidental. Compilations don’t require inquiries of management or analytical procedures – we simply rely on our knowledge of accounting principles and a general understanding of your business.
We invite you to contact us directly, or continue browsing our website to learn more about how we can help you.