Reviews and Compilations - Tri-Cities Tax and Accounting

Reviews & Compilations

Tri-Cities CPA, PLLC provides review and compilation services throughout Washington State. We perform reviews and compilations for businesses such as local retailers, auto-body shops, electrical contractors, construction and landscaping companies, local casinos, and non-profit organizations. Each industry has specific and complex reporting and disclosure requirements. Our experience in these industries allows us to provide you an accurate financial statement that can be trusted by your financial institution, vendors, or licensing and bonding company.

As financing for small businesses has become increasingly more difficult to obtain, more and more lending institutions are requiring a review or compilation as a prerequisite for providing financial assistance such as loans and operating lines of credit. Reviews and compilations differ from an audit significantly. Audits are time extensive, costly, require significant examination of records, and provide a high level of assurance.

Review Engagement

A review engagement requires that the Tri-Cities CPA, PLLC maintain independence from the client. Independence can be impaired through a variety of activities. Tri-Cities CPA, PLLC will discuss these potential activities with you to ensure independence is not impaired. A review also consists of gaining an understanding of the client, inquiries, analytical procedures test work, and reading the financial statements. A review engagement also provides limited assurance. Through our past experience in financial audits and working with many different industries preparing reviewed and compiled financial statements, Tri-Cities CPA, PLLC is able to provide quality review services that allow the client to have quality GAAP financial statements that are accurate and completed in a timely manner.

Compilation Engagement

A compilation engagement differs from a review as independence is not required and no assurance is given through the financial report. A compilation does provide GAAP financial statements and requires Tri-Cities CPA, PLLC to gain an understanding of the client, compile the financial statements, and read through the financial statements.

Tri-Cities CPA, PLLC will walk you through the various engagement requirements that your lending institution or other outside third party is requiring. We work with any financial institution in the Tri-Cities which allows you, Tri-Cities CPA, PLLC, and the bank to have a clear understanding of what is expected. We are dedicated to providing you these services accurately and will meet your expected timeline.

Frequently Asked Questions on Review and Compilation Services in Tri-Cities, WA

What is a Review Engagement in the context of tax preparation, and when might it be necessary for my business?

A Review Engagement is a type of service provided by a CPA firm that involves reviewing financial statements for accuracy and completeness. This may be necessary for your business if you need to provide financial statements to lenders, investors, or other stakeholders.

Can you explain the key differences between a Review Engagement and a Compilation Engagement?

The main difference between a Review Engagement and a Compilation Engagement is the level of assurance provided. A Review Engagement provides limited assurance, while a Compilation Engagement provides no assurance. In a Review Engagement, the CPA will perform analytical procedures and make inquiries to provide a moderate level of assurance, whereas in a Compilation Engagement, the CPA will simply compile financial information provided by the client.

What are the benefits of having a Review Engagement done for my business's tax documents?

Having a Review Engagement done can provide additional credibility to your financial statements and may be necessary if you need to provide financial statements to outside parties such as lenders or investors.

How does the Review Engagement process work, and what should I expect if I choose to go through with it?

The Review Engagement process involves the CPA performing analytical procedures and making inquiries to provide a moderate level of assurance on your financial statements. This process will typically involve meetings with your accounting staff and the CPA, and may take several weeks to complete.

What are the specific requirements that need to be met for a CPA firm to perform a Review Engagement?

To perform a Review Engagement, a CPA firm must meet certain professional standards and have the necessary expertise and resources to perform the engagement.

When might a Compilation Engagement be more appropriate than a Review Engagement for my business's tax documents?

A Compilation Engagement may be more appropriate if you simply need to compile financial information for tax purposes and do not require additional assurance on your financial statements.

How does the Compilation Engagement process work, and what should I expect if I choose to have one done?

The Compilation Engagement process involves the CPA compiling financial information provided by the client. This process is typically less involved than a Review Engagement and may be completed in a shorter amount of time.

What are the limitations of a Compilation Engagement, and how might they impact my business's tax filings?

A Compilation Engagement provides no assurance on the accuracy or completeness of financial statements, so it may be less credible than a Review Engagement. However, it may still be sufficient for tax filing purposes.

Are there any legal or regulatory requirements that I should be aware of when it comes to Review and Compilation Engagements for my business's tax documents?

There are certain professional standards and requirements that must be met for CPA firms to perform Review and Compilation Engagements. Additionally, there may be specific regulations related to tax filings that you should be aware of.

How much can I expect to pay for Review and Compilation services, and what factors might impact the cost?

The cost of Review and Compilation services will depend on a variety of factors, including the complexity of your financial statements and the amount of time required to complete the engagement. To get an accurate estimate, it's best to contact a CPA firm like Tri-Cities Tax and Accounting that provides Review and Compilation Services in Tri-Cities WA and the surrounding areas.