Financial Statement Review and Compilation

Understanding Financial Statement Review vs Compilation

Guaranteeing the accuracy and transparency of your financial statements is vital to your business. This is where financial statement review and compilation services come in. While both services involve analyzing your financial statements, they offer different levels of assurance to decision-makers and regulatory agencies. Both compilation and review statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP).

Financial Statement Compilation:

A financial statement compilation is a straightforward service where we help present your financial data in an organized, professional format. This service does not involve verifying the accuracy of your financial information; instead, it focuses on arranging it in a clear and standardized manner. We compile your data from various sources, including journals, ledgers, entries, and trial balances, to create your financial statements. Additionally, this process can help you make better use of technology and implement effective accounting processes. It is a cost-effective way to present your financial position to stakeholders, and the compiled statements remain easily accessible to your internal accountants or CFO for further use.

• Objective: Present your financial statements using the data you provide.
• ‍What it Involves: Financial statements are organized from your records without assurance of accuracy.
• Purpose: It offers a clear financial picture for internal use or basic communication with stakeholders.

Financial Statement Review:

A financial statement review involves a more detailed examination than a compilation, providing limited assurance that there are no significant errors in the financial statements. In a review, the CPA evaluates the completeness and logic of your financial statements based on the data you supply. The focus is on understanding how the statements were generated and ensuring compliance with GAAP. While the review does not include a deep dive into transactions, it can highlight weaknesses in accounting practices, offering useful feedback for improving your financial processes.

• Objective: A review provides limited assurance of fair financial statements.
• What it Involves: Analytical checks identify inconsistencies.
• Purpose: It adds credibility for stakeholders without the detail of an audit.

Choosing the Right Service: Review or Compilation?

Selecting the appropriate engagement depends on the level of assurance you require and stakeholder expectations. We've provided a breakdown of the assurance provided by each service:

• Financial Statement Compilation:
  • Provides no assurance on the accuracy or fairness of your financial statements. It simply presents your financial information in a professional format based on the data you provide. However, compiled statements can be valuable for internal use or basic communication with external parties.
• Financial Statement Review:
  • Offers limited assurance. The review process involves analytical procedures and inquiries to identify potential inconsistencies or errors. While not a full audit, it provides increased confidence to users relying on your financial statements.

You don’t need both services — our team will help you determine whether a review or a compilation is the right fit.

Our Approach to Financial Statement Review and Compilation: Your Path to Clarity

At SSL Associates, we understand that navigating financial statement review and compilation options can be confusing. That's why we offer a client-centric approach, tailoring our services to your needs and ensuring a seamless experience.

Here's what sets our approach apart: