Compiled Financial Statements (Unaudited)
Compiled Financial Statements (Unaudited) are the basic level financials of service that is offered by an Accountant with respect to financial statements.
WHAT ARE COMPILED FINANCIAL STATEMENTS (UNAUDITED)?
All organizations, whether private, public, or non-profit, need to prepare Compiled Financial Statements (Unaudited) on their performance to provide fiscal accountability and accuracy to their stakeholders and people with an interest in the company. Compiled Financial Statements (Unaudited) enable management to make business decisions, enable creditors to evaluate loan applications and provide individuals with information to make investment decisions.
The lowest level of assurance in regard to financial statements is Compiled Financial Statements (Unaudited). One of the main reasons these are used in lieu of other financial statement presentations is for the timely release of financial information about an organization. Compiled Financial Statements (Unaudited) are a presentation of various financial reports and documentation, which is the representation of management or owners of an organization. Compilation standards allow the organization to omit note disclosures as long as there is no intent to mislead the users. This is the only type of financial statement that allows omitted disclosures.
An accountant will compile the information supplied by the client into a proper financial statement presentation. This is the only financial statement presentation that a non-certified accountant can prepare. The accountant will read the financial statements and issue a report. If the organization has elected to omit any disclosures, this must be included in the accountant’s report of the financial statements, as well as if the disclosures had been included; they might have influenced the user’s conclusions.
The accountant preparing the Compiled Financial Statements (Unaudited) is not required to verify or confirm the records and do not need to analyze the statements for accuracy. However, an accountant engaged to compile financial statements is required to obtain a general understanding of the organization’s business transactions, its accounting records, qualifications of their accounting personnel, the accounting basis on which the financial statements are presented, and the form and content of the financial statements. If any obvious material misstatements or missing information is noted, the accountant must discuss these items with the organization’s management for clarification or adjustment to the statements or withdraw from the engagement if management refuses to provide additional or revised information.
In Compiled Financial Statements (Unaudited), the organization, not the accountant, is responsible for the accuracy and completeness of the financial statements. Since the statements were not audited or reviewed, they are not certified by a Certified Public Accountant (CPA). No opinion or assurance is expressed in the report as to whether the financial statements are free of material misstatements or false/missing information or if they are found to be accurate, complete, and fairly presented to meet the requirements of the US GAAP (Generally Accepted Accounting Principles).
THE IMPORTANCE OF COMPILED FINANCIAL STATEMENTS (UNAUDITED)
Compiled Financial Statements (Unaudited) allow companies to have financial statements prepared at a lower cost. There are many instances where Compiled Financial Statements (Unaudited) (compilations) may be required by a third party. Whether it’s for regulatory needs, such as state contractor licensure or banking requirements, or for investors or shareholders, the time will come when you will be asked to present your financial statements prepared by an independent and licensed certified public accountant. For instance, the Small Business Administration may require companies participating in the 8(a) program to submit financial statements compiled by a licensed independent public accountant. The importance of Compiled Financial Statements (Unaudited), done right and in a timely manner, are the reason you should engage an Accountant.
In a Compiled Financial Statements (Unaudited) engagement, we must familiarize ourselves with your industry and its applicable accounting principles to determine whether there are any material departures from generally accepted accounting principles (GAAP) in your financial statements.
QUICK AND THOROUGH
Preparing Compiled Financial Statements (Unaudited) are the lowest form of financial statement assurance and thus we are not required to confirm balances with your bank, investors, or suppliers. We quickly and thoroughly review for obvious errors and make sure to ask management any pertinent questions.
DONE ACCURATELY EVERY TIME
When we present the Compiled Financial Statements (Unaudited), we state we have not audited or reviewed and do not express an opinion or any other form of assurance. However, some Compiled Financial Statements (Unaudited) can have notes expressing unique aspects and accounting policies. If requested, we can provide these notes for outside or third parties.
And don’t hire just any accountant. We will work hard to get what you need to be accomplished so you can continue with the things you need to do to further your business. We will give you a timeframe of when you can expect your work to be completed and we will stick to that timetable. We offer competitive pricing, and our goal is to build a relationship with our clients based on trust and results. We roll up our sleeves and work hard for you.
A compiled statement has been prepared by an accountant but has not been audited or certified. The usual reason for the release of compiled statements before they are certified is timeliness. The company has financial information that it wants or needs to be released promptly to investors
Compiled Financial Statements (Unaudited) provide information from an organization’s accounting documents about their economic resources and obligations on a specific date, as well as their financial activities over a period of time. Compiled Financial Statements (Unaudited) are usually prepared in accordance with Generally Accepted Accounting Principles (GAAP), which are the standards issued by the American Institute of Certified Public Accountants (AICPA), but they may also be prepared on another comprehensive basis of accounting, such as cash basis or tax basis, depending on the needs of the users of the financial statements.
Compiled Financial Statements
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