Compilations, Reviews & Agreed Upon Procedures

When a company needs financial statements prepared, but does not need the high level of assurance that accompanies a full financial statement audit, Wilson Lewis is able to provide them with alternatives to meet their needs. Both a compilation and review engagement will produce a full set of financial statements and an agreed-upon procedures engagement will produce a report detailing the procedures performed and the results of those procedures.

Compilations

A compilation engagement involves applying accounting and financial reporting expertise to assist management in presenting information in the form of financial statements, without providing any assurance on those financial statements. These financial statements can then be provided to third parties or used internally to assist management in analyzing the results of operations.

Reviews

The objective of a review is to obtain limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with a particular financial reporting framework. This limited assurance is obtained primarily through the performance of inquiry and analytical procedures and the financial reporting framework is usually determined by the needs of third parties such as banks, bonding agents, and other potential business partners.

Agreed-Upon Procedures

An agreed-upon procedures engagement is performed solely to assist management in evaluating concerns over a specified area. The testing procedures to be performed are agreed to at the beginning of the engagement but can be modified along the way as needed. No opinion on the results of these procedures is provided and only the procedures agreed to are performed. Agreed-upon procedures engagements give management flexibility in determining the types of procedures they would like performed and over what areas of the company.

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