PSG | CPA Services | For Individual or Business Tax Needs | Compilation, Review and Audit

PSG Certified Public Accountants

Compilation, Review and Audit

Compilation involves preparing financial statements based on information provided by a company's management, and will often involve some adjustment to the accounting records. Depending on client needs, we can provide compiled financial statements on a monthly, quarterly or annual basis. Sufficient for many small, private companies, a compilation provides no assurance that the financial statements are free of material misstatements or errors and may be presented in conformity with Generally Accepted Accounting Principles (GAAP) or Other Comprehensive Basis of Accounting (OCBOA).

Reviews are often needed for companies that must report their financial results to third parties such as creditors, regulatory agencies, or business owners who are not actively involved in the management of the company. During a review, we make inquiries concerning financial statement-related matters, interviewing company management and personnel as needed. We use analytical procedures designed to identify unusual items or trends in the financial statements that may require further analysis. A review provides limited assurance that material changes to the financial statements are not necessary.

An audit is the most in-depth financial statement service we provide. An audit begins with a study of internal controls and an evaluation of risks. Based on these procedures, we design audit tests to mitigate these risks. These tests can include direct confirmation of account balances with third parties such as banks and other financial institutions, customers and vendors. We also review significant contracts and agreements in addition to examining the source documents supporting these transactions. Our report to management may offer recommendations for improvements on internal controls, insights into business risk, industry trends and regulatory issues while highlighting opportunities for savings throughout the organization.