Financial Statements

Reinhart & Company CPA's can prepare the following Financial Statements:
  • Compiled
  • Reviewed
  • Audited

More Information
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Why do businesses need Financial Statements?

What is the difference between Financial Statements?

   Compiled Financial Statements

   Reviewed Financial Statements

   Audited Financial Statements

Did you know that YOU are responsible for?

What a Financial Statement does NOT do.


Why do businesses need Financial Statements?

Financial statements are usually required by third parties including: bonding companies, banks, government agencies, shareholders and grants.

Compiled Financial Statements

A Compiled Financial Statement is the lowest level financial statement. A compilation differs significantly from a review or an audit of financial statements. A compilation does not contemplate performing inquiry, analytical procedures, or other procedures performed in a review. Additionally, a compilation does not contemplate obtaining an understanding of the organization's internal control; assessing fraud risk; tests of accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, confirmation or the examination of source documents (for example, cancelled checks or bank images); or other procedures ordinarily performed in an audit. Therefore, a compilation does not provide a basis for expressing any level of assurance on the financial statements being compiled. A compilation can be prepared by someone who is not independent (the person who records the checks and deposits into your accounting software package can prepare a compilation).

In plain English, Compiled Financial Statements takes the clients
numbers and puts them in a Balance Sheet and Income Statement.

Reviewed Financial Statements

The objective of a Reviewed Financial Statement is to express limited assurance that there are no material modifications that should be made to the financial statements in order for the financial statements to be in accordance with generally accepted accounting principles (GAAP). A review differs significantly from an audit of financial statements, in which the auditor provides reasonable assurance that the financial statements, taken as a whole, are free from material misstatement. A review does not contemplate obtaining an understanding of the Organization's internal control; assessing fraud risk tests of accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, confirmation, or the examination of source documents (for example, cancelled checks or bank images); and other procedures ordinarily performed in an audit. Accordingly, a review does not provide assurance that we will become aware of all significant matters that would be disclosed in an audit. Therefore, a review provides only limited assurance that there are no material modifications that should be made to the financial statements to be in conformity with the generally accepted accounting principles.

In plain English, Reviewed Financial Statements include having the preparer
make inquiries of the client, performing analytical procedures and adjusting
accounts that appear to be incorrect (not in accordance with GAAP).

Audited Financial Statements

Audited Financial Statements include the expression of an opinion about whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audits are conducted in accordance with auditing standards generally accepted by the United States of America and include tests of your accounting records and other procedures we consider necessary to enable us to express such an opinion. Audit procedures include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Audits involve judgment about the number of transactions to be examined and the areas to be tested. Audits obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the Organization or to acts by management or employees acting on behalf of the Organization. Because audits are designed to provide reasonable, but not absolute, assurance and because audits do not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements.

Did you know that YOU are responsible for?

  • Making Management decisions
  • Designating an individual with suitable skill, knowledge, or experience to oversee any
    bookkeeping services, tax services, or other services we provide
  • Evaluating the adequacy and results of the services performed
  • Accepting responsibility for such services
  • Establishing and maintaining internal controls, including monitoring ongoing activities

What a Financial Statement does NOT do

Compiled, Reviewed and Audited Financial Statements cannot be relied upon to disclose errors, fraud, or illegal acts that may exist. However, Reinhart & Company CPA's will inform the appropriate level of management of any material errors, and of any evidence of information that comes to our attention during the performance of our compilation, review and audit procedures, that fraud may have occurred. In addition, we will report to you any evidence or information that comes to our attention during the performance of our compilation, review and audit procedures regarding illegal acts that may have occurred, unless they are clearly inconsequential. We have no responsibility to identify and communicate deficiencies in your internal control as part of the compilation, review or audit.

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Professionally prepared Financial Statements that are both easy to understand
and informative can help businesses/organizations achieve bonding, loans and revenue
to help their business succeed.
Give Reinhart & Company CPA's a call to find out what your Financial Statement needs are!