Woodland Hills · Los Angeles
Audit, Review & Compilation
Reporting engagements shaped around the needs of owners, lenders, investors, and other stakeholders.
Financial statement services
The right level of assurance.
For the decision ahead.
A financing request, an investor conversation, or a board reporting requirement can change what you need from your financial statements. MyCPA helps you identify the appropriate engagement and prepare for the work ahead.
Start with who will use the statements and what they require. Preparation, compilation, review, and audit serve different purposes.
Financial reporting at a glance
Reliable records are the foundation.
Only reviews and audits provide assurance on financial statements.
A practical comparison
Comparative Guide to
Financial Statement Services
Four services. Different purposes and levels of assurance.
| What to compare | Audit | Review | Compilation | Preparation |
|---|---|---|---|---|
| Assurance provided | Reasonable—high, but not absolute | Limited | None | None |
| Core work | Risk assessment and procedures to obtain supporting audit evidence. | Primarily inquiries and analytical procedures. | Apply accounting expertise to present statements; read for obvious material misstatements. | Prepare statements from information management supplies. |
| CPA report | Auditor’s report expressing an opinion. | Review report with a limited-assurance conclusion. | Compilation report; no opinion or assurance. | No report; statements indicate that no assurance is provided. |
| Independence | Required. | Required. | Not required; lack of independence must be disclosed in the report. | Not required. |
| A starting point when… | A recipient or applicable requirement calls for an audit. | A recipient requires limited assurance. | A recipient accepts a CPA compilation without assurance. | You need organized statements for management. |
Confirm the required service with your lender or other statement user before starting. An audit provides reasonable assurance about material misstatement; it does not guarantee that every error or instance of fraud will be detected.
Further reading: AICPA: Compilation, review, and audit ↗
Accounting & auditing
Clearer Financial Reporting.
Better-Informed Decisions.
Reliable financial statements help you understand performance, plan ahead, and communicate with lenders and investors. MyCPA, LLP provides accounting and assurance services tailored to your reporting needs.
Through the audit process, we evaluate risks of material misstatement and perform procedures to support our opinion on your financial statements. We communicate significant findings and, where appropriate, identify opportunities to strengthen accounting processes and internal controls.
Our team explains findings clearly, answers your questions, and discusses practical next steps. When additional accounting, advisory, or tax support would be helpful, we consider those services separately, subject to applicable independence requirements.
Discuss your financial reporting needs →Understanding your options
Which financial statement service do you need?
Your business is growing. You may be purchasing a building, applying for financing, or preparing for an investor conversation. Before moving forward, the other party asks for financial statements. The next question is not simply how to prepare them, but which level of service the recipient requires.
Financial statements also help you understand performance and make everyday business decisions. We can discuss an appropriate reporting framework, reporting frequency, and engagement scope based on how the statements will be used. Obtain the lender’s or other recipient’s requirements before selecting a service.
01 · Reasonable assurance
Audit
An audit provides reasonable assurance—a high, but not absolute, level of assurance—that the financial statements are free of material misstatement. The CPA assesses risks, including fraud risk, understands relevant internal controls, and obtains audit evidence using procedures appropriate to the engagement.
Procedures may include inspection, observation, confirmations, inquiries, and analysis. Independence is required. The auditor’s report expresses an opinion on the financial statements.
When to consider it: An audit is required by a lender, investor, governing agreement, or other applicable requirement, including some financing and transaction situations.
02 · Limited assurance
Review
A review provides limited assurance through procedures consisting primarily of inquiries and analytical procedures. The CPA develops an understanding of the business and its industry to identify areas where material misstatements may arise.
The work is substantially narrower than an audit and does not include the full scope of audit testing or risk assessment. Independence is required.
When to consider it: A financial statement user requires limited assurance, and a review meets the relevant reporting or financing requirements.
03 · No assurance
Compilation
A compilation applies accounting expertise to help management present financial statements and includes a compilation report. The accountant reads the statements and considers whether they appear appropriate in form and free from obvious material misstatements.
A compilation does not include the evidence-gathering procedures of an audit or the procedures needed for a review. The report provides no opinion, conclusion, or assurance.
When to consider it: A lender or other recipient accepts a compilation report and does not require assurance.
04 · No assurance
Financial Statement Preparation
Preparation helps owners obtain current financial information for managing the business. Statements can be prepared monthly, quarterly, or annually from the records management supplies.
This service does not verify the accuracy or completeness of the information or provide assurance. No accountant’s report is issued.
When to consider it: You need organized statements for internal decisions, or an outside recipient has confirmed that prepared statements satisfy its needs.
Explore financial statement preparation →Start with the recipient’s requirements.
Bring the written request, reporting period, deadline, and recent accounting records. We will discuss the appropriate service, reporting framework, independence considerations, and the information needed to move forward. Management remains responsible for the financial statements and the information supplied.
Discuss your financial statement needs →Preparing for your engagement
Start with the requirement.
Build a clear path forward.
Share the request.
Bring the lender’s instructions, investor request, or other reporting requirement, along with the deadline and reporting period.
Confirm the scope.
We discuss the reporting framework, service level, independence, responsibilities, and timing before accepting the engagement.
Organize the records.
Agree on the supporting schedules and documents needed, a point of contact, and a plan for resolving questions.
Connected support
Part of your bigger picture.
Let us talk about what is next
A good conversation.
A clearer way forward.
Tell us what is on your mind. We will help you find the right next step.