Compilations and Reviews
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Compilations and reviews are different from each other in the information they provide, however both are forms of reviews CPAs give to their clients.
Compilations: The purpose of a compilation is to present financial statements to the client without assurance that the information provided is accurate.
Reviews: A review on the other hand, gives a limited assurance of the validity of these financial statements as the information is provided by the client and organized by the CPA.
The information derived from reviews and compilations is only as accurate as the information that is given to the CPA who prepares them. Many financial institutions that use statements from CPAs will require some level of assurance, which means they may prefer a review as opposed to a compilation in order to get a more accurate picture of the business’ financial standing.
Preparing compilations and reviews can require specific details and organization that can be time-consuming and confusing. Instead of trying to wade through it on your own, let JTC CPAs help make your next financial compilation or review go smoothly, getting the financial assurances your bank needs from you.