Through compilation services, Karki CPA LLC prepares monthly, quarterly, or annual financial statements based on information we receive from our clients. Our firm becomes familiar with the accounting principles and practices common to the client’s industry, and acquires a general understanding of the client’s transactions and how they are recorded. After compiling the financial statements, we will read them and consider whether they are appropriate in form and free from obvious material errors. We then issue a standard report that says, in effect, that the financial statements were compiled, but because they were not audited or reviewed, no opinion is expressed.
A compilation is sufficient for many private companies. However, if a business needs to provide some degree of assurance that its financial statements are reliable, it may be necessary to have our firm perform an account review.