ACCOUNTING SERVICES
The accounting services our firm offers are Preparations, Compilations, & Reviews of financial statements. These services are performed in accordance with Statements on Standards for Accounting and Review Services (SSARS) issued by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants.
Each of the accounting engagements encompasses a different level of service as dictated by SSARS.
PREPARATIONS
Preparations are the most basic level of accounting service provided by CPAs. This level of service entails preparing financial statements using the very information provided by management. There is no assurance or formal report provided.
COMPILATIONS
Compilations are the next level of accounting service which entails assisting management in presenting financial statements using the company’s specified financial reporting framework (GAAP or Special Purpose Framework). A compilation report is issued stating that the financial statements were not reviewed or audited and therefore the accountants do not express an opinion on them (no assurance).
REVIEWS
Reviews of financial statements do not rise to the level of audits, but do provide limited assurance that, based on review procedures performed, the financial statements do not contain material misstatements. A review report is issued stating that while the accountant did not audit the financial statements, based on the required review procedures, the accountants are not aware of any material modifications that are necessary for the statements to be in accordance with presented method of accounting (GAAP or Special Purpose Framework). The distinction between limited assurance and assurance is very important. In a review, after performing procedures, which are substantially less in scope than audit procedures, only limited assurance is provided. In an audit, procedures are performed to provide assurance, an opinion on the financial statements as a whole.
