Tuesday, December 12, 2017

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HomeServices Compilation & Review

Compilation & Review Services

When your accountant works on your financial statements, what usually happens? Audited, reviewed, and compiled financial statements differ in many respects - most notably in the amount of assurance provided that the financial statements are fairly presented. At Yoss & Allen, we provide two levels of service: Compilation and Review.

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The items included in financial statements represent in both words and numbers certain entity resources, claims to those resources, and the effects of transactions and other events and circumstances that result in changes in those resources and claims. Investors, creditors, and shareholders often need assurance that the information presented in the financial statements accurately represents the current financial position of a company.

As part of our commitment to our clients, we present information that is in accordance with Generally Accepted Accounting Principles (GAAP). Knowledge of such information enhances the confidence of those interested in financial reporting.

Compilation - Low Assurance

A compilation refers to financial statements that were prepared or compiled by a company's outside accountant. The outside accountant converts data provided by a client into financial statements without providing any assurances or auditing services. A compilation engagement does not require inquiries of management, nor does it require any specific attestation procedures. Rather, we rely on the knowledge of accounting principles and a general understanding of the client's business and industry. If in reading the financial statements, such information appears to be inconsistent, or otherwise questionable, additional procedures may need to be performed. The compiling CPA's express no assurance on the financial statements because they have performed no procedures upon which any assurance can be based.

Review - Limited Assurance

At Yoss & Allen we focus on quality, service, and industry knowledge, and initiate all reviews with these principles in mind. Each engagement team includes a partner, and team of professionals, with a deep understanding of financial statement review and reporting requirements, and a familiarity of the client's industry. Each review is performed and reported in conformance with all applicable professional standards in all material respects.

The commencement of each review includes a series of inquiries and analytical procedures to ensure consistency and relevance of financial reporting. Our review procedures do not contemplate obtaining an understanding of the entity’s internal control procedures, assessing fraud risk, or testing accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, confirmation, and the examination of source documents. If the financial statements present material misstatements or information that appears to be inconsistent, or otherwise questionable, additional procedures will be performed or recommendations will be made.

Upon completion of our engagement, our review report will state that we have reviewed the financial statements in accordance with standards issued by the American Institute of Certified Public Accountants (AICPA), and whether or not we are aware of any material modifications or disclosures that should be made to the financial statements. Because the procedures for a review are less in-depth than those for an audit, a review provides limited assurance that the financial statements do not require any material modifications.


 

For our most recent peer review, please see CalCPA Peer Review - Rating of Pass and Perry M. Henderson Peer Review - Rating of Pass.

 

 

 

 

 

 

Should you have any questions as to which type of assurance service may be right for you, please give us a call. We will be happy to assist you, and answer any questions you may have.

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