Financial reporting can help in your financial and investment planning. Banks and bonding companies may also require financial statements. Alan Douglas prepares three different types of financial statements, based on your company’s need:
- Audit – provides the highest level of assurance. It includes an intense evaluation and examination of your financial records. All information is verified and confirms whether the financial statements are fairly stated and free of material misstatements.
- Review – provides limited assurance that there are no material modifications that should be made to the financial statements and that they conform with generally accepted accounting principles. This review is less extensive than an audit but more detailed than a compilation.
- Compilation – provides no assurance or opinion on the financial statements. A compiled financial statement takes the company’s balance sheet and income statement information and prepares the compilation. The financial statements are based on information from the company without being verified.