Reviewed, Compiled, & Prepared Financial Statements
Financial statements are an important business tool for managing the present and planning for the future.
In addition to auditing financial statements, we provide three other levels of service that are often appropriate for our clients: reviews, compilations, and preparation engagements. Lenders, bonding companies, and grantors will often request that organizations provide them with these types of financial reports. Because the procedures are limited in nature and our focus is not on gathering audit evidence and expressing an opinion, the cost is generally less than an audit. The following definitions describe these services.
Reviewed Financial Statements
We perform limited procedures on clients' financial statement data, generally analytical procedures and inquiries of personnel, in order to provide limited assurance that we are not aware of any material modifications that need to be made in order for the financial statements and disclosures to be in accordance with generally accepted accounting principles or a special purpose framework (i.e. cash or tax basis).
Compiled Financial Statements
We assist clients by compiling and presenting their financial data into a standard financial statement format, including disclosures required by generally accepting accounting principles or a special purpose framework (i.e. cash or tax basis). Financial statements may or may not include note disclosures required by generally accepted accounting principles, depending on your needs. There is no assurance on the reported information, as we do not perform any procedures on the data that has been provided to us by management. We will read the financial statements to determine whether the statements appear to be free from obvious errors or misstatements.
Prepared Financial Statements
We will prepare the financial statements for the client using records and other information provided by management. Financial statements can be prepared in accordance with generally accepted accounting principles or a special purpose framework (i.e. cash or tax basis). A preparation engagement is considered a non-attest service so RLH is not required to determine independence from the client and we will not issue a report to provide assurance on the financial statements.
Why Choose RLH
Having credible financial statements that are easy to understand is an important part of monitoring the performance of your business. RLH recognizes that an important part of financial statement preparation is familiarity with your industry. We assign staff to your engagement that has prior experience with your industry. We also have subscriptions to regular industry updates that allow us to stay current with the issues you face in your business. Using this industry information to present your financial statements in the proper way is important.
RLH has assisted countless clients with financial statement preparation that has allowed them to maintain current financing levels, secure additional financing, and communicate effectively with donors and grantors. We are consistently commended on the layout of our clients' financial statements and how easy to read they are.
For more information about our reviewed, compiled, and prepared financial statements, contact our Assurance Team Leader or complete the form below. We look forward to working with you!