Our firm provides outstanding service to our clients because of our dedication to the three underlying principles of professionalism, responsiveness and quality.Read More
Our firm is one of the leading firms in the area. By combining our expertise, experience and the energy of our staff, each client receives close personal and professional attention.Read More
Companies who choose our firm rely on competent advice and fast, accurate personnel. We provide total financial services to individuals, large and small businesses and other agencies.Read More
Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company. Your stockholders, creditors, or private investors have different levels of risk tolerance, so I provide two levels of assurance to meet your needs.
Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company.
Your stockholders, creditors, or private investors have different levels of risk tolerance, so I provide two levels of assurance to meet your needs.
Review - Limited Assurance
More involved than a compilation, a review engagement consists primarily of analytical procedures I apply to the financial statements, and various inquiries I make of your company's management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, I may need to perform additional procedures.
A review doesn't require me to study and evaluate your company's internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: "I am not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.
Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit.
Compilation - Lowest Level of Assurance
In compiling financial statements for a client, I present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, I rely on my 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.
Which Report Should You Use?
Each type of financial statement report may suit specific circumstances, depending on requirements from your client's bank or other parties, as well as meet budgetary needs.
Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.
Edward M. Simpson, CPA | 20 Newman Avenue, Suite 9010, East Providence, RI 02916 | Phone: (401)434-4448 | Fax: (401)434-4440 | firstname.lastname@example.org