· COMPILATIONS · FINANCIAL STATEMENTS · PROFESSIONAL PREPARATION
Professionally prepared financial statements, without the full audit scope.
A compilation is the right tool when you need financial statements prepared to professional standards for internal use or basic third-party requirements, without the time and cost of an audit or review.
Jarrard, Nowell & Russell, LLC is a separate entity from Archer Lewis, LLC. Jarrard, Nowell & Russell, LLC provide attest and assurance services. Jarrard, Nowell & Russell, LLC create independent, objective assessments to give stakeholders confidence in financial reporting. Services include non profit audits, private company audits, employee benefit plan audits, reviews, compilations, agreed upon procedures, and prepared financials. These services are performed under professional standards established by the AICPA and require a high level of independence.
Our Approach
The right level of assurance for what your situation actually requires.
Not every situation that requires financial statements requires an audit. A compilation is a professional preparation of your financial statements based on information provided by management, without the independent testing and verification that an audit involves. It's appropriate when financial statements are needed for internal decision-making, basic lender reporting, or situations where a full audit or review isn't required. Archer Lewis prepares compilations accurately, on time, and in the format your situation requires, and we tell you clearly when a higher level of assurance would better serve your needs.
What's Included
What a compilation engagement includes
A compilation is focused on accurate presentation, not independent verification. Here's what the engagement covers.
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Financial Statement Preparation
Balance sheet, income statement, and cash flow statement prepared accurately from management-provided information.
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Appropriate Disclosures
Notes to financial statements prepared to meet applicable accounting standards for the basis of accounting used.
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Compilation Report
Accountant's compilation report communicating the nature of the engagement and the limited assurance it provides.
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Basis of Accounting Selection
Guidance on the appropriate basis of accounting for your situation (GAAP, income tax basis, or cash basis), and consistent application.
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Management Representation
Assistance ensuring management representations are complete and accurate, protecting both the organization and the accountant.
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Annual or Periodic Preparation
Compilations prepared on the schedule your situation requires: annual, quarterly, or as needed.
Choosing the right level of assurance matters before the engagement begins.
Organizations sometimes commission an audit when a review would suffice, or a compilation when their lender actually requires a review. Archer Lewis advises on the right level of assurance for your specific requirements before the engagement starts, so the scope matches what your situation actually demands.
Talk to an Assurance Specialist
Common Questions
What organizations ask about compilations.
A compilation is professional preparation of financial statements without independent verification. The accountant doesn't test or confirm the numbers. A review provides limited assurance through analytical procedures and inquiries. The accountant does some independent work but not the full scope of an audit. Reviews provide more credibility to outside parties than compilations.
When financial statements are needed for internal use, basic reporting to owners or partners, or situations where a lender or other party has specifically indicated a compilation is acceptable. If you're not sure what level your situation requires, we'll tell you before the engagement starts.
It depends on the bank and the situation. Some lenders accept compiled statements for smaller loans or early-stage borrowers. Others require reviewed or audited statements. We advise on what your specific lender requires before you start the engagement.
The accountant relies on information provided by management: your trial balance, supporting schedules, and information about your business operations and significant transactions. We provide a request list at the start of the engagement.
Compilations are typically the fastest of the three levels of assurance, often completed within a few weeks when records are organized and information is provided promptly. We provide a timeline estimate at the start of the engagement.
