What Is the Difference Between an Audit, Compilation, and a Review?

To learn why a business should conduct regular audits and the difference between an audit, compilation, and a review, continue reading and reach out to our skilled New Jersey CPAs. Here are some questions you may have:

Why should businesses conduct regular audits?

For a business to succeed, it must be operating to its fullest potential. There are many ways a business owner can ensure this. However, in most cases, business owners will turn to audits to get the job done. Audits can provide clarity when it comes to the financial status of a business. These reports can be handed over to lenders, owners, and creditors. If you require this information as a business owner, reach out to our experienced New Jersey CPAs at Werdan Devito, LLC.

What are examples of auditing services?

Audits ensure that businesses are optimally functioning. Audits are also used to establish credibility to all parties of interest such as lenders or shareholders. Our team has handled a wide range of auditing matters to assist business owners. The following are some of the auditing services that our firm can provide for you and your business:

  • Auditing your business‚Äôs tax records
  • Assessment of internal controls
  • Analysis of bookkeeping processes within your business
  • Comparison to competitors

What is the difference between a compilation and a review?

There are times where full audits are not necessary. Full audits can be time-consuming and costly. In these circumstances, if you are looking to discover how your business is operating but do not want to conduct a full audit, you can have a compilation or a review conducted instead.

A compilation is a presentation of financial statements and other important information regarding your business. Our firm will read and interpret these statements to execute a compilation report. This can be used to compare monthly or quarterly statements. You should understand that compilations are not entirely thorough. There is a chance that the information obtained from a compilation may not be entirely accurate.

Business owners who do not want to conduct an audit may choose to conduct a review instead. A review is more thorough than a compilation. A review ensures that your company’s financial statements meet the terms set out by the¬†Generally Accepted Accounting Principals. They generally do not require serious modifications.

If you have any further questions about audits, reviews, to compilations, reach out to our experienced New Jersey CPAs at Werdan Devito, LLC. We would be happy to help.

Contact our experienced New Jersey firm

Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.