Financial Statements

We offer three levels of service related to financial statements in addition to assisting our clients in preparing such statements. These services include preparing financial statements based on information provided by and entity’s management (compilation); inquiry and analytical procedures applied to financial statements (review); and performing procedures such as confirmation with outside parties, observation of inventories, and testing of selected transactions by examining supporting documents (audit).

  • A compilation is useful to small, privately-held companies that need professional assistance in preparing their financial statements. This level of service helps business owners identify obvious errors and ensures that financial statements are properly presented.
  • A review is often needed for entities that must report their financial position to outside parties, such as banks, creditors, or other regulatory agencies. This level of service is also warranted for absentee business owners or those not actively involved in managing the business. This level of assurance provides limited assurance that the financial statements are free from material errors.
  • An audit is the most extensive service and provides the highest level of assurance. An unqualified opinion provides reasonable assurance that the entity’s financial statements fairly present, in all material respects, its financial position and results of operation in accordance with certain accounting principles.

Financial statements generally include four components:

  • Balance Sheet
  • Income Statement
  • Statement of Cash Flows
  • Footnotes