Audit, Review & Compile Financial Statements
There are three levels of assurance on the accuracy of a financial statement that a CPA can provide: audits, reviews and compilations. A compilation provides the lowest level of assurance and may be required by a lender if borrowing a small amount of money or if the company has significant collateral. A review provides limited assurance and allows the CPA to determine if material modifications should be made. An audit provides the highest level of assurance that financial statements are free from material misstatement. It is intended to provide investors, creditors and outside parties the highest level of comfort on a financial statement’s accuracy.