SERVICE COMPARISON

SERVICE COMPARISON

  FINANCIAL STATEMENT PREPARATION COMPILATION REVIEW AUDIT
Level of assurance that the financial statements are not materially misstated CPA does not obtain or provide any assurance that there are no material modifications that should be made to the financial statements CPA does not obtain or provide any assurance that there are no material modifications that should be made to the financial statements. CPA obtains limited assurance that there are no material modifications that should be made to the financial statements The CPA obtains reasonable (defined as high, but not absolute) assurance about whether the financial statements are free of material misstatement.
Objective To prepare financial statements pursuant to a specified financial reporting framework. To apply accounting and financial reporting expertise to assist management in the presentation of financial statements. To obtain limited assurance as a basis for reporting whether the CPA is aware of any material modifications that should be made to the financial statements for them to be in accordance with the applicable financial reporting framework, primarily through the performance of inquiry and analytical procedures. To obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement thereby enabling the CPA to express an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with an applicable financial reporting framework and to report on the financial statements in accordance with the auditor’s findings.
The CPA is required to be independent No No — but if the CPA is not independent, the CPA is required to indicate lack of independence in the CPA’s compilation report.