Financial Reporting BACK Providing the business owner with information to understand and analyze the results of business’s operations and financial position by assisting in the preparation of financial statements.   The information contained within a well designed and accurate financial statement can be invaluable in making decisions that can lead to increased profitability and efficiency of your business. Outside parties (bankers, vendors extending credit and others) value the information contained in your financial statements as well, but often are unsure of the accuracy of the information presented. In some instances they may requst added assurances that the information contained in these financial statements are accurate. To this end, CPA's offer three levels of assurance on financial statements: COMPILATION: A compilation consists of preparing financial statements from information provided by you without testing of the information. In a compilation, the CPA offers no assurances as to the accuracy of the information provided, however, during the course of the work, we may note areas requiring correction. REVIEW: The next higher level of service is a review. In a review, we make inquiries of you and your personnel and perform analytical procedures in order to determine whether the financial statements are fairly presented in accordance with Generally Accepted Accounting Principles (GAAP). In a review, we issue a report indicating that "we are not aware of any material modifications" which would be necessary in the financial statements. AUDIT: The highest level of assurance is an audit. The primary difference between an audit and a review is that we request confirmation from third parties regarding the accuracy of the information presented in your financial statements. This may include sending confirmations to bankers, customers, lenders, attornies or other parties outside of your organization. In addition, other procedures such as inventory counts, physical observation of property and equipment and other procedures may be required. Tom Rogers, CPA