As a business owner, you may be accountable to creditors, private investors, and shareholders, all of whom are interested in ensuring that the company’s financial statements accurately represent the true financial position of the company.
There are three types of CPA certified financial statements: audits, review and compilations. Our firm currently offers compilation services to our clients, as banks often require compilations from an independent CPA as part of their lending covenants. In compiling financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the statements.
Compilations don’t require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.