Financial Statement Reviews and Compilations in Florida: Choosing the Right Service

Financial statement services are not interchangeable. An audit, review, and compilation provide different levels of assurance and involve different procedures. The right service depends on the needs of lenders, owners, boards, regulators, grantors, bonding companies, and other users, as well as contractual or legal requirements.

Audit: reasonable assurance

An audit provides reasonable assurance and results in an auditor’s opinion on whether the financial statements are fairly presented, in all material respects, under the applicable reporting framework. Audits involve risk assessment, an understanding of relevant controls, and substantive and other procedures designed to obtain sufficient appropriate evidence.

Review: limited assurance

A review provides limited assurance, substantially less than an audit. The accountant primarily performs inquiry and analytical procedures and reports whether any material modifications should be made for the statements to conform with the applicable reporting framework. A review does not include obtaining an understanding of internal control or testing accounting records to the extent performed in an audit.

Compilation: no assurance

In a compilation, the accountant assists management in presenting financial information in financial statement form but does not obtain or provide assurance. The accountant applies accounting and financial reporting expertise and issues a compilation report. Independence is not required for a compilation, although any lack of independence must be disclosed in the accountant’s report.

How to choose

Start with the exact requirement. Obtain written confirmation from the lender, regulator, grantor, investor, or governing document rather than assuming a particular service will be accepted. Consider the users’ risk, the organization’s size and complexity, future financing plans, ownership changes, and whether an audit is required by law or contract.

Prepare for any engagement

Regardless of service level, management remains responsible for the financial statements and the accuracy and completeness of records. Reconcile accounts, organize significant agreements, document estimates, close the books, and identify unusual transactions before the engagement begins. Better records generally lead to clearer reporting and fewer delays.

Talk with SAS Assurance

SAS Assurance helps Florida organizations evaluate and complete financial statement audits, reviews, and compilations. We serve clients in Orlando, Apopka, Central Florida, and throughout Florida with a practical, clearly scoped approach. Contact us at https://www.sasassurance.com/contact-us to discuss which service meets your needs.