Compilations
Compilations are usually requested for internal purposes and are based upon information provided by a company’s management. They do not offer assurance but may involve some adjustments to accounting records. Although prepared mostly for internal purposes, Banks often request compilations for lending purposes.
Reviews
Reviews provide limited assurance to the company’s financial statement recipients and involve inquiries and analytical procedures that confirm financial statement presentation, while identifying items requiring further analysis.
Audits (Including 401k)
Audits offer the highest level of assurance to third parties, and include in-depth examination and confirmation of account balances, inventories, and selected transactions. Audits are often performed as a result of a regulatory requirement or financial statement covenant(s) imposed by various financial institutions.