Review and Compilation Services are two types of financial statement services provided by CPAs to businesses, which differ in terms of the level of assurance and the depth of analysis involved. These services are often sought by companies that need financial reports for internal management, investors, or lending institutions but do not require a full audit.
Review services provide a moderate level of assurance on financial statements. In a review, the CPA performs analytical procedures and makes inquiries to ensure that the financial statements are reasonable and free of material misstatements. However, the level of assurance is lower than that of an audit, and the CPA does not perform a full audit of the company’s financials.
Review services provide a moderate level of assurance on financial statements. In a review, the CPA performs analytical procedures and makes inquiries to ensure that the financial statements are reasonable and free of material misstatements. However, the level of assurance is lower than that of an audit, and the CPA does not perform a full audit of the company’s financials.
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