Compilation Services
Our firm prepares monthly, quarterly, or annual compiled financial statements.
We become familiar with the accounting principles and practices common to our client's industry, and acquire a general understanding of our client's transactions and how they are recorded. We then compile management's financial records into a financial statement and consider whether they are appropriate in form and free from obvious material errors. We then issue a report that says, in effect, that the financial statements were compiled, from management records.
Management's financial data is arranged into conventional financial statement form without the assurance as to whether changes are necessary for the statements to be in conformity with generally accepted accounting principles. Unless we become aware that the management data provided is in error or is incomplete, then no additional testing is performed. We may, however, make financial adjustments to the accounting records prior to issuing a compilation report.
Compilation standards permit the CPA to compile financial statements that omit disclosures (i.e. notes) otherwise required by a higher level review (see Review Services, below). The omissions must be indicated in the report by the addition of a paragraph stating that management has elected to omit the disclosures generally required by professional standards and that if the financial statement contained this information, it might affect the user's conclusion.
Review Services
Our firm prepares interim, or annual reviewed financial statements.
A private company engages our firm to perform a review of its financial statements and issue a review report that provides limited assurance that material changes to the financial statements are not necessary. Appropriate disclosures, in the form of notes to the financials, must be included in the review statements.
Our firm obtains a working knowledge of the industry in which the entity operates and acquires information on key aspects of the organization including operating methods, products and services, and material transactions with related parties.
We then make inquiries concerning such financial matters as accounting principles and practices, recordkeeping practices, accounting policies, actions of the board of directors, and changes in business activities. Analytical procedures are subsequently applied to identify unusual items or trends in the financial statements that may need explanation. Essentially, a review is designed to see whether the financial statements "make sense" without applying audit-type tests.
We issue an Accountants Review Report with both the financial statements and notes to the financials attached. This level of reporting is frequently used for credit purposes; either credit from suppliers or lines of credit with banks. | 
