/Financial Statements Preparation
Financial Statements Preparation 2017-07-05T14:33:19+00:00

Financial Statements Services

Financial Statements: Compilations & Reviews

Not all reports are the same. Do you need a report for shareholders? Regulatory requirements? A debt covenant requirement? Or maybe to measure performance?

We assist our clients by providing the appropriate level of reporting on their financial statements in accordance with professional standards. The report takes one of three forms: audit, review or compilation. The nature of the report depends on such factors as client needs, size and complexity of the organization, and the needs of creditors, regulators and funders. PKHB CPAs’ team of accountants and financial experts helps you determine which reports you need, so you can choose the right level of service without wasting resources. We know our longstanding clients very well, and we take the same care getting to know our new ones.

Financial Statement Compilation

A compilation meets the most basic requirements, and is often prepared for privately-held entities that do not need a higher level of assurance. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without providing any assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with an applicable financial reporting framework. Generally, a compilation is for internal use but in some instances such a report may be needed for a lender for financing or periodic review. It is not necessary for your CPA to be independent to carry out compilation procedures.

Compilation procedures primarily include assisting management in adjusting its books and records to comply with its financial statement framework and taking such information to prepare financial statements with or without footnotes.

Financial Statement Review

“A review level service differs significantly from a compilation level service in that the CPAs are independent and go further than a compilation. CPAs performing a financial review must make inquiries and perform analyses of the financials, and then issue an expression of “limited assurance” that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework. Often a review level service is performed when a business organization has outside investors, bank loans or creditors, and are used when third parties do not require higher-level “audited” statements.

Review procedures include performing analytical procedures to identify potential misstatements, adjusting your books to comply with your financial accounting framework, reviewing significant and non-recurring transactions for proper accounting, and assistance with drafting your financial statements.

PKHB is available to meet your financial statement needs.