Reviews, Compilations, and AUP
Financial Statements Review
A financial statement review involves an evaluation of your company’s financial statements and provides limited assurance about the accuracy and conformity of the financial statements with the appliable accounting principles.
Key features of a financial statement review:
- Gains a general understanding of your company's accounting practices and industry.
- Apply analytical procedures to identify any unusual trends or potential errors in the financial statements.
- Performs inquiries and discussions with management to gain an understanding of your organization's operations and financial reporting process.
- Issue a report stating that we are not aware of any material modifications that need to be made to the financial statements for them to be in accordance with the applicable accounting principles.
A review can be a cost-effective way to meet the requirements of third parties when an audit is not required.
Financial Statements Compilation
A financial statement compilation involves the preparation of financial statements by an accountant based on the information provided by your organization’s management, without providing any assurance on the accuracy or completeness of the data. In a compilation engagement, we take the financial data supplied by you and organize it into the appropriate financial statement format.
Key features of a financial statement compilation:
- We do not verify the accuracy of the information provided by the client.
- We do not express any opinion or conclusion on the financial statements.
- The compiled financial statements are generally accompanied by a "Compilation Report" that explicitly states that no assurance is provided.
For some entities, this statement is sufficient to meet management needs as well as the needs of certain third parties.
Agreed-Upon Procedures (AUP)
In an agreed-upon procedures engagement, we perform specific procedures and tests agreed upon with you or a third party. This type of engagement is usually tailored to address specific areas of concern or to meet certain reporting requirements.
Key features of agreed-upon procedures engagement:
- The scope of work is determined by the specific procedures agreed upon with you or a third party.
- We provide a report that outlines the procedures performed and the findings. The report does not include an overall conclusion or opinion.
- Agreed-upon procedures engagements are often used when stakeholders need targeted, detailed information on specific financial matters.
We offer various agreed-upon procedures (AUP) in accordance with the standards of the American Institute of Certified Public Accountants (AICPA).
