Compilations, Reviews and Audits
Whether you're evaluating your first compilation or determining if it's time for a review or audit, having experienced guidance can help you move forward with confidence.
The Right Level of Assurance Starts with the Right Conversation
The right engagement isn’t about choosing the highest level of assurance—it’s about selecting the service that best aligns with your organization’s goals, stakeholders, and reporting requirements. As your business evolves, those needs often evolve as well. Working with an advisor who understands your organization means you have guidance not only for today’s engagement, but for tomorrow’s opportunities and challenges.
Which Level of Assurance is Right for You?
- Compilation
- Review
- Audit
To perform a compilation, accountants will collect a company’s current financial information and organize it into financial statements and other supplemental schedules that are, in turn, given to the company’s management. No assurance is offered. Accountants are not required to make inquiries or perform other procedures to corroborate or review the information supplied by management. A compilation may be appropriate if you:
- Need financial statements for internal use or management
- Are asked by a lender for compiled financial statements
- Want financial information presented in accordance with applicable accounting standards
- Don’t require independent assurance
A review involves performing inquiry and analytical procedures that provide the accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statements for them to be in conformity with the applicable accounting framework. A review is substantially less in scope than an audit. A review may be appropriate if you:
- Need to satisfy lender or investor requirements
- Want additional confidence in your financial reporting
- Have a board or stakeholders requesting greater oversight
- Are experiencing growth that calls for more reliable reporting
An audit gives reasonable assurance on the accuracy of the financial statements and their compliance with the applicable accounting framework. The accountant expresses an opinion on the material presentation of the financial statements to the authority requesting the audit. Audits involve obtaining an understanding of internal control and assessing control risk, assessing fraud risk, tests of accounting records and of responses to inquiries by obtaining corroborating evidence, and certain other procedures ordinarily performed during an audit. An audit may be appropriate if you:
- Must meet regulatory or contractual requirements
- Receive federal funding or grants
- Are preparing for financing, an acquisition, or ownership transition
- Need the highest level of confidence in your financial statements. No material modifications are needed to the statements to ensure their accuracy
Not sure which engagement is right for your organization? Requirements vary by lender, funding source, industry, and stage of growth. An advisor can help you determine the most appropriate option before you begin the process.
An Advisor for Today—and for What’s Next
Financial reporting needs rarely stay the same. As organizations grow, secure financing, pursue acquisitions, expand operations, or experience leadership transitions, the level of assurance they need often changes as well.
That’s why choosing an advisor is about more than completing a single engagement. It’s about having someone who understands your organization, anticipates changing requirements, and helps you make informed decisions as new opportunities arise. Whether you’re evaluating your first compilation or determining if it’s time to move to a review or audit, having experienced guidance can help you move forward with confidence.
Compare Your Options
Choosing the right financial statement service depends on your organization’s needs, reporting requirements, and stakeholders. If you are unsure which service is right for your organization, our team can help you understand your options.
| audit | Review | Compilation | |
|---|---|---|---|
| Level of assurance | Highest | Limited | None |
| Independent testing | Yes | Some analytical procedures | No testing |
| Internal controls reviewed | Yes | Limited understanding | No |
| Best suited for | Organizations requiring a high level of assurance | Organizations needing some assurance | Organizations needing financial statement preparation |
A Better Audit Experience
YeoLean is a Lean Six Sigma-based audit process designed to improve communication, reduce unnecessary steps, and create a smoother engagement from planning through completion. Our team arrives prepared, works efficiently, and maintains clear communication throughout the process so your team can stay focused on your organization’s priorities.
Comprehensive Planning
Every engagement begins with thoughtful planning to establish timelines, identify priorities, and prepare for fieldwork.
Clear Timelines
A structured schedule keeps your audit on track from start to finish. Clear expectations and ongoing communication help everyone stay aligned.
Efficient Fieldwork
Our team arrives prepared and works purposefully to minimize disruption. We focus on gathering what we need while respecting your team’s time.
Collaborative Communication
You’ll always know where your audit stands. We maintain open communication throughout the engagement, addressing questions and sharing updates as they arise.
Meaningful Recommendations
An audit should do more than result in a report. We provide recommendations to help strengthen internal controls, improve processes, and support your organization long after the engagement is complete.
Strengthen Confidence in Your Financial Reporting
Connect with assurance professionals who can help you address reporting requirements, improve transparency, and provide confidence to stakeholders.
Frequently Asked Questions
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What’s the difference between a compilation, review, and audit?The primary difference is the level of assurance provided. A compilation prepares financial statements without providing assurance, a review offers limited assurance through analytical procedures and inquiries, and an audit provides the highest level of independent assurance through more extensive testing.
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How do I know which engagement I need?Requirements often depend on your lender, investors, board, grantors, or regulatory obligations. Your organization’s size, growth plans, and reporting objectives also play a role.
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Does every business need an audit?Many privately held businesses only require a compilation or review. An audit is typically required when requested by lenders, regulators, funding agencies, or governing documents.
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Can my organization move from a compilation to a review or audit?Yes. Many organizations begin with one type of engagement and transition as they grow, seek financing, or encounter new reporting requirements.
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How long does the process take?The timeline depends on the type of engagement, the complexity of your organization, and the availability of financial information. As part of our YeoLean audit process, our team will work with you to develop a timeline that works to meet deadlines with minimal disruption to your staff.
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