Reviews & Compilations

Reviews & compilations help the business owner and others understand the financial numbers specific to the business itself. At RC Jones and Associates, we want to help you understand that there are big differences between an audit, a review and a compilation. Generally, it’s important to know which financial statement is useful for a particular situation. Depending on the degree of accuracy needed, here are the three levels of financial statements:

1. Audits – As the highest level of financial statement service, an audit can provide assurance to an investor or lender that the accounting of income,expenses, and liabilities is accurate. Some audit procedures include:

• Inquiry of financial reporting and operations
• Evaluation of internal controls
• Testing documentation of account balances and class of transactions
• Confirmation of accounts with a third party

1. 1.  Reviews – Including a lower level of assurance than an audit, a review indicates the financial condition of a business with less intrusion into specific accounts through analysis of: 
      • Inquiry of financial reporting and operations
      • Accounting practices and principles used by the business
      • Procedures for accumulating accounting information
      • Responsibilities by management of internal controls

• Compilations – Labeled as such and attached to financial statements, a compilation gives a general understanding of the procedures of your business, As related to accounting principles and reporting systems, this information is basic financial reporting without assurance of accuracy.

Overall, depending on the level of assurance needed by the requesting institution, the cost for reviews and compilations of financial statements should reach a proper balance. 

RC Jones and Associates – Call Today (816) 792-9966 to set up an appointment to determine how we can help with your business reviews & compilations.