Compilation services are the most basic level of service provided by CPAs with respect to financial statements. Complying with Statements on Standards for Accounting and Review Services (SSARS), having a clear understanding with the client as to the services to be provided, and reading the financial statements to determine whether there are any obvious departures from generally accepted accounting principles, CPAs assemble financial data based on the responsible entity’s assumptions.
Upon completion of the compilation, Wegner CPAs will issue a report on your financial statements. The report includes a statement that the compilation was performed in accordance with AICPA professional standards. It will also indicate that a compilation is limited in its scope and does not enable the CPA to express an opinion or any other form of assurance on the financial statements. This is known as the expression of “no assurance.” Compiled financial statements are often prepared for small businesses or organizations that do not need a higher level of assurance expressed by a CPA.
In addition to the compilation procedures, Wegner CPAs performs inquiries and analytical procedures in review engagements to express “limited assurance” on financial statements that have not been audited. After completion of review procedures in accordance with SSARS, the CPA issues a report stating that a review was performed in accordance with AICPA professional standards, that the review is less in scope than an audit, and that the CPA did not become aware of any material modifications necessary to be in conformity with generally accepted accounting principles.
A review can be conducted for businesses or organizations that need financial statements reviewed for outside creditors who do not require audited statements, for internal use purposes, or for those who do not want to purchase audit services.
Audit services are the highest level of service provided by Wegner CPAs with respect to financial statements. We perform verification and substantiation procedures in accordance with Generally Accepted Auditing Standards (GAAS). These standards require us to engage with our clients to understand fully their system of internal control.
The culmination is a report stating that the audit was performed in accordance with GAAS and expresses “reasonable assurance” that the financial statements fairly present your financial position and results of operations.
