Review & Compilation

Our review staff is experienced and ready to help by performing reviews and compilations. Jennings Hawley,  and Co., P.C. can assist in the adoption of accounting changes and internal control reviews. We also perform reviews of retirement plans and prepare construction contract schedules for percentage-of-completion and completed-contract methods.

review and compilation

How We Can Help

As your business grows, it may become necessary to review or compile your financial statements. Lenders, investors, and other external stakeholders may ask for them so they can learn more about your business. You may need these reports for internal evaluations. There are several important differences between a compilation and a review. In a compilation, the accountant presents financial statements based on any representations made by management without any attempt to verify this information. In a review, the accountant takes a more analytical approach by making inquiries in an effort to determine whether the information is correct. This provides a limited amount of assurance that the financial statements don’t need to be modified.

Important Differences Between a Review and a Compilation

Some of the important differences between a review and a compilation include the following:

  • Level of Assurance — This refers to how much assurance there is in whether the financial statements are being fairly represented. A review will have more assurance than a compilation, which will have the lowest amount of assurance (or even none at all).
  • Reliance on Management — In all three of these scenarios, the accountant starts with the account balances that are given to them by management, but a review requires more testing than a compilation (which almost completely relies on the presented information).
  • Work Performed — A review takes a lot more time to complete because there are certain procedures that have to be performed, but the effort needed to perform a compilation is relatively minor.

A review requires more effort, so it will be more expensive than a compilation. There’s also a difference in terms of the level of demand for these services. Users of these financial statements (such as investors and lenders) are more likely to ask for a review, because it will give them the most assurance that what they’re reading is a fair representation of the company’s finances. Be sure to speak to a professional for more information about which one is right for you.

When a Compilation is Performed

A compilation should only be performed in very straightforward, uncomplicated situations. If you only need to present the company’s financial information on a surface level or need a second pair of eyes to look at your financial records, a compilation may be enough. But it’s always a good idea to speak to a CPA to make sure you’re choosing a method that will give you the right amount of assurance for your specific situation.

When a Financial Review is Needed

A lot of businesses who aren’t legally required to have an audit performed still like to do a periodic analysis of their financial records, so most of them choose to do a review to save time and money. While there are no laws that require regular reviews of financial statements, some grantors or lenders may ask companies to do an annual review of their records as part of their loan or grant agreement.

A lot of companies find that a regular financial review is beneficial to their business, even though they’re not required to do so. The insights and moderate level of assurance can provide a certain level of confidence that can give them, their board, lenders, and investors more confidence. It also provides the benefit of having a second pair of independent eyes, because they will look into the company’s financial statements.

Determining Which One is Best

In every case, a CPA is actively engaged in the process, so it all depends on the needs of your business. You should always consult with a CPA so you can better understand each option and how it reflects the goals of your business. A lot of times, the CPA who performs the company’s general accounting, bookkeeping, and tax preparation is also responsible for its financial statements. And if the CPA’s independence isn’t impaired, he or she can perform whatever service is needed to meet your specific requirements.

If you’re looking for a CPA in Corpus Christi to help you with a review or compilation, be sure to reach out to Jennings & Hawley. We have a team of experienced professionals who can take care of any task related to a review or compilation. We also provide a broad range of accounting and bookkeeping services to residents of Corpus Christi and throughout the country. So if you’re looking for a reliable accounting firm that can help you with any review or compilation, feel free to get in touch with us. We would be happy to speak with you about your specific needs!

Professionals You Can Trust

Jennings, Hawley & Co., P.C., like all providers of personal financial services are required by law to inform their clients of their policies regarding the privacy of client information. CPAs are bound by professional standards of confidentiality that are even more stringent than those required by law. Therefore, we are committed to protecting your right to privacy. If you have more questions about how we protect our clients privacy, please visit our Privacy Policy page or give us a call.

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    500 N Shoreline Blvd # 1010
    Corpus Christi, TX 78401

    Jennings, Hawley & Co., P.C.

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    Phone: (361) 884-8894

    500 N Shoreline Blvd # 1010
    CCorpus Christi, TX 78401

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