When CPAs prepare or assist in preparing financial statements, they are required under professional standards to issue a report on those financial statements.
This report can be one of three types:
- Audit report
- Review report
- Compilation report
The type of report is determined by mutual agreement between the client and the CPA. This determination usually depends on many factors, such as the needs of the client, needs of creditors or investors, the size and complexity of the business, and other factors. All publicly-held enterprises are required by securities laws to provide annual audited financial statements, while privately-held companies often opt for reviewed or compiled statements. Or, credit agreements with lenders may require audited statements, even for private companies.
Regardless of the level of service performed by the CPA, the financial statements are the primary responsibility of the reporting entity.
We are experienced in performing audits, reviews, and compilations for entities of all kinds and sizes.