Los Angeles Financial Statements
Financial Statements - Reviews & Compilations
Stockholders, creditors, and
private investors often need assurance from a CPA firm that the financial statements accurately represent the true financial position of a company. Often
times companies dread the thought of a CPA firm analyzing their books.
At Lawrence & Associates in
Los Angeles, we turn this compliance function into a powerful tool that can improve your business
operations and bottom-line
results. It's a chance to get professional input to tighten controls, cut expenses, plan for the
future, and improve overall profitability. Lets start thinking "opportunity" when its financial statement
time. We provide two levels of
assurance for financial statements, which are described below.
Review - Limited
Less extensive than an audit, but more involved than a
compilation, a review engagement consists primarily of analytical procedures we apply to the financial
statements, and various inquiries we make of your company's management team. If the financial
statements or supporting information appear inconsistent or otherwise questionable, we may need to
perform additional procedures.
A review doesn't require us to study and evaluate your
company's internal controls or verify data with third parties. Rather, a review report expresses limited
assurance in the form of the statement: "We are not aware of any material modifications for the financial
statements to be in conformity with the Generally Accepted Accounting Principles (GAAP)." Reviewed
financial statements must include all required footnotes and other disclosures.
Why might a business request a review engagement? It can be a
good middle ground, providing the advantages of a CPA's technical expertise without the work and expense
of an audit.
Compilation - Lowest Level of Assurance
In compiling financial statements for a client, we present
information that is the "representation of management" and express no opinion or assurance on the
statements. Compilations don't require inquiries of management or analytical procedures. Instead, we
rely on our knowledge of accounting principles and a general understanding of your
Which Report Should You Use?
Each type of financial statement report may suit specific
circumstances, depending on requirements from your client's bank or other parties, as well as meet
Understanding each report's unique strengths and weaknesses
can help you choose the most appropriate one. Please call if you have questions about which type of
report is right for you.