Review - Limited Assurance
Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company's management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review doesn't require us to study and evaluate your company's internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.
Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit.
Compilation - Lowest Level of Assurance
In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
Which Report Should You Use?
Each type of financial statement report may suit specific circumstances, depending on requirements from your client's bank or other parties, as well as meet budgetary needs.
Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.
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We will happily offer you a free consultation to determine how we can best serve you.
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We have worked with Cropper Accountancy for over 15 years and have been tremendously impressed with their communication,
their attention to detail and their follow-up. Everyone we have encountered at the firm has
been responsive and polite and we value our relationship with them.
Romney White, Managing Member of HUD Multifamily Housing
Cropper Accountancy Corp conducted our year-end audit in an efficient, friendly, and knowledgeable manner. It was a first-year
audit, and they came up to speed on our business model and practices very quickly. Concurrently,
they took the time to advise us of upcoming GAAP and tax rulings that could affect our business,
and how to navigate the changes. John, Bryce and Emily are more than our auditors - we consider
them partners in our quest to expand and improve our business.
Karyn White, Growth Point Technology Partners