CPA-prepared financial statements when no assurance is required

Audit, review and compilation reports are issued by Ebotagborndang Mbi, PLLC, a separately registered CPA firm.

A compilation applies accounting and reporting expertise to information supplied by management without verifying it through audit or review procedures. • Agree on the accounting framework, the rules used to prepare the statements. • Present management's financial information in the agreed statement format. • Read the statements for apparent errors or missing information. • Raise questions with management where clarification is needed. • State in the compilation report that no assurance is expressed. You receive the agreed compiled statements and compilation report.

The statement package contains the financial information and disclosures agreed for the engagement. • Balance sheet showing assets, debts and owners' balances. • Income statement showing revenue, expenses and results. • Cash flow statement showing cash movements where applicable. • Notes explaining accounting policies and required disclosures unless omitted by agreement. • Supplementary schedules providing additional detail where agreed. You receive the agreed financial statements, notes and supporting schedules.

Compilation services are priced at $2,000–$8,000+, with the framework, disclosures and final scope confirmed in the proposal. • Compilation with disclosures: statements under U.S. generally accepted accounting principles (GAAP) with the required notes. • Compilation with substantially all disclosures omitted: the report identifies the omission; suitability depends on the intended use and applicable standards. • Special purpose framework: statements using tax basis, cash basis or another agreed reporting framework. • Preparation of financial statements — statements prepared for management with no CPA report (AR-C 70). • Preparation is a separate non-assurance service, not a compilation, and the applicable scope and fee are agreed separately. You receive the statements and, for a compilation, the CPA firm's report specified in the agreed engagement.