Audit, Review and Compilation are three distinct levels of service relating to financial statement reporting.  Each is a useful tool in specific situations.

An Audit is the highest level of service involving critical review and selected independent verification of financial information.  The audit results in an independent, professional opinion from a certified public accountant attesting to the accuracy and reliability of the financial statements and the representations they contain.  Audits are often necessary to comply with the requirements of lending institutions, suppliers, regulatory agencies or others who rely heavily on the information contained in the financial statements.  In addition they offer an assessment of your operational systems from an objective source for even greater operating efficiency.

A Review engagement involves performing inquiry and analytical procedures to provide a reasonable basis for expressing limited assurance that no material modifications need to be made to the financial statements.  A review is generally issued when the scope of an audit is not required, but more than a compilation is required.

A Compilation engagement involves assembling financial data from management's records and presenting the information in the form of financial statements without expressing assurance on the statements.  A compiled financial statement is generally intended for management's use only and is the least expensive.

Our professionals also have extensive experience in preparing Agreed Upon Procedures and Special Reports.   Let us assist you in evaluating your financial reporting needs and determining which level of service meets your requirements.   Contact Wayne Drealan or Ellen Hoefker with any questions you may have.

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Turbes Drealan Kvilhaug Hoefker & Co., P.A.
tdkcpa@tdkcpa.net
909 Fourth Avenue, Worthington, MN 56187  507-376-4151  Fax: 507-376-4154
114 W. Main Street, Luverne, MN 56156  507-283-2116  Fax: 507-283-2117