Los Angeles Financial Statements

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.

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 business.

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 budgetary needs.

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.

Financial Statements - Reviews & Compilations

Compilation - Lowest Level of Assurance