Let’s face it – for many business owners and their finance teams assurance services are compliance and checklist oriented. While this will always be true to an extent, you should look for a provider that is able to add value to your business in this process. A review or compilation is a unique opportunity for a financial professional with the experience of looking into many businesses to review your company.
At the end of a review engagement with Gomerdinger and Associates, you should you expect your financial statements. In addition, here is an example of just one tool we will use to review your Company's financial situation with you.
Review
Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements and various inquiries we make of your company’s management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures. A review does not require us to study and evaluate your company’s internal controls or verify data with third parties or physically inspect assets.
Why might a business request a review engagement? It can be a good middle ground, providing the advantages of Gomerdinger and Assoicates technical expertise without the work and expense of a full audit. While these may be required by the same parties listed above, some businesses also perform reviews as a best practice.
Compilation
In compiling financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the statements. Compilations do not require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business. Banks often require compilations from an independent CPA as part of their lending covenants. If the Company is going to look for outside financing, this is also a good first step to prepare for the process.
