This is the third post in a three-part blog series Read more →
See More: Audit and Assurance
Reviews and Compilations
Most organizations require reporting on their financial performance and the accounting professionals at Gelman, Rosenberg & Freedman provide three different levels of financial statement reports based on the nature and needs of your organization. Whereas an audit provides the highest level of assurance that financial statements are fairly presented, reviews and compilations are less rigorous and less costly. They also can be more appropriate. Many funders, creditors and state charitable registration requirements, for example, will accept these forms of assurance in lieu of a full audit.
Review engagements are substantially less in scope than audits. They rely upon inquiry and analysis of the financial statements instead of detailed testing procedures. Essentially a review is designed to determine if the financial statements make sense, without applying audit tests. Thus, a review offers limited assurance instead of issuing an opinion. Review procedures include:
- Learning the industry, the organization and its operations
- Inquiring about the organization’s accounting principles and practices
- Applying analytical procedures to identify unusual items or trends
Compilations involve preparation of financial statements with no assurance. We simply take your financial information and present it in the form of a financial statement. Compilation engagement procedures include:
- Learning the accounting principles and practices common to the industry
- Learning about the organization’s transactions and recording practices
- Compiling the financial statements and ensuring that they are appropriate in form and free of obvious errors
Amy Boland and her GRF team make the annual audit as painless as possible!
Kathy Farrell | Vice President, Finance and Administration
Advocates for Youth