Historical Financial Statements:
Audits, Reviews and Compilations

Historical financial statements reveal the “GPS” starting point for a business’ direction. When you know where you are and what resources you really have, you can identify which direction you need to go, what decisions have to be made and what it will take to get there.

Audits, reviews and compilations are services designed to help you provide financial statements that show the financial results of your business at a level of assurance that fits your situation.

What’s the Difference?

Audits result in an independent CPA firm’s expression of an opinion on whether the company’s financial statements are presented fairly. These are generally required by outside parties, such as investors, creditors, lenders or regulatory agencies seeking significant assurance about the financial position, results of operations and cash flows of your business.

Reviews result in a report where the CPA provides “negative assurance” regarding the fairness of financial statements. The report states that the accountants are not aware of any modifications that would be necessary to make the financial statements fairly presented. Reviewed financial statements are often used by businesses to report their financial position, results of operations and cash flows to third parties where audits aren't required.

Compilations result in an accountant’s report stating they have compiled the financial statements, but do not provide any assurance on the fairness of the financial statements presented. Compilations are favored by businesses that do not require audits or reviews because the users are comfortable with the financial information provided without any assurance from the CPA.

Internal Control Consulting

Business owners can’t control everything, yet there are some simple and, where appropriate, more complex steps that can strengthen a company’s internal control. Our internal control consulting is designed to assist you with:

  • Evaluating the strengths and weaknesses of your accounting system. 
  • Implementing procedures to promote confidence and trust in your accounting system.
  • Reducing the risk of errors or theft, and increasing the chances of detecting them in a timely manner if they do occur