Assurance

Financial Statement Compilation

A financial statement compilation is a service which consists of summarizing financial statement data. This is the lowest level of financial statement preparation service we offer and provides no level of assurance that the statements are free from misstatement or do not require changes to conform to generally accepted accounting practices (GAAP).

A compiled financial statement is created by compiling data from your company’s financial information. That information, along with our knowledge of your business and its processes is crucial for creating our report.

The result of this process is the compilation report, which can be used for interim reporting, year-end reporting (in some cases), or for use by lenders or other parties providing low levels of financing or credit. 

Financial Statement Reviews

Financial statement reviews are an analysis of financial statements and record-keeping practices to determine whether your company’s statements are in accordance with generally accepted accounting principles (GAAP). This service provides limited assurance, a basic level of assurance: more than a compilation, less than an audit. Financial statement reviews are often used for year-end business reporting and can provide lenders or other parties with information required for credit or financing.

To provide a review, we require a full set of financial statements, with footnotes. We thoroughly analyze these statements to determine if there are any material misstatements or deviations from appropriate accounting practices. We will obtain an understanding of your business and its accounting practices, as well as your industry. Additionally, we’ll document key account balances and inquire about your record-keeping system.

At the end of the review process, we will issue a review report which provides our conclusion on whether any modifications must be made to your company’s financial statements to comply with GAAP.

Financial Audits

Corporate audits are a critical part of ensuring your company’s financial well-being. Audits are the most thorough financial statement service we provide and, therefore, they provide the highest level of assurance, higher than a compilation or review. Audit reports may be required by banks, bonding companies, or other parties, and an audit may be necessary when selling your business or seeking investors or financing.

The outcome of the audit process is our report, in which we evaluate the accuracy of your company’s financial statements per generally accepted accounting principles (GAAP) and determine whether they are free of material misstatement, error, and fraud. To do so, we perform observations, tests, and comparisons and gather relevant evidence for use in our evaluation. Among other things, this includes

  • Evaluating internal control system
  • Testing documentation on transaction classes and account balances
  • Confirming accounts receivable with a third party
  • Performing analytical procedures
  • Interviewing management and relevant parties on operations and financial reporting
  • Physical inspection

When this process is completed, we issue our report containing our opinion on the status of the company’s financial statements. We will also alert you of any weaknesses in your company’s internal control system, which allows you to rework and improve your system.

In need of an assurance service?

Our extensive review, compilation, and auditing experience allows us to provide the most thorough assurance services for our clients, no matter their business type or needs. Have questions or concerns about what the process entails or which type of service is appropriate for your business needs? Contact us and our assurance experts can give you answers.

See what else we have to offer

We Understand Your Needs

Discover how Steensma Novotny PLC can be a resource to you.