Charles Coker, CPA ~ Accounting Services & Business Consulting

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Audit, Review, Compiled Financial Statements
As a CPA, I can issue three different types of reports.  These reports include Compilations, Reviews and Audits.  With over 30 years of experience and the use of ProSystem fx Engagment software, I can quickly provide you with a professional and timely report.


A compilation is for clients that have assurance in their own numbers and want a CPA to issue a report in the AICPA prescribed format.  

I take the information provided by the client and encapsulate it into the AICPA prescribed format.  I verify that the cash in the bank is correct, and for construction companies, also prepare a Work In Progress schedule, using the percentage of completion information provided to me by the client.  

I do not make any changes to the information provided by the client since that would be a misrepresentation of the report issued, which states that all numbers are the representation of the client and that I have not reviewed or audited the financial statements.

In other words, a compilation report is perfect for someone thinking, "Thank you very much, I know what I am doing, I only want you to prepare the report in the AICPA prescribed format."

Before I issue a review report, I perform analytical procedures on selected accounts, which entail testing the account balances. I perform bank reconciliation analysis, test for relationships between the cost of goods sold, the WIP, sales and inventory.  Once I have performed analytical procedures, I issue a review report which describes the degree of responsibility I am taking and what I have done to ensure accuracy.

In a review, the client says, "I'm not sure I did this right, please check some of my numbers and make any adjustments before issuing the report."

As you can see there is quite a difference between a compilation and a review.

Finally, during an audit, I perform analytical procedures on all of the chart of accounts using an audit program that is documented for each section of the balance sheet and income statement. An audit is a very thorough review and analysis of the client's books, and takes more time.

An audit is perfect for someone who is thinking, "I want my accountant to check everything, to make sure everything is correct, and to issue a report."