A Review – how is that different than an audit?
A “review” is a financial statement prepared by a CPA that provides “limited assurance” that no material modifications to the financial statements are necessary for the financial statements to be in conformity with generally accepted accounting principles (GAAP). Basically, the review opinion says we looked at the financial statements and we didn’t see anything that looked wrong.
A review typically involves 1 to 3 days of fieldwork, and the auditor primarily gathers information for the process by asking questions of financial staff and management, and by applying analytical procedures to your nonprofit’s financial data.
My nonprofit does not need to have an audit. Are we required to have a review?
A review is not required by any state or federal laws, although your nonprofit may have funding sources that require a review when an audit is not required.
The Costs of a Review?
A review is considerably less expensive than an audit, and the fee for a review conducted by Taylor Roth is agreed to in advance and is a fixed fee; there no additional "out of pocket" expenses.
A Compilation – how is that different than a review?
A “compilation” is a financial statement prepared by a CPA that provides no assurance on a nonprofit’s financial statements. Basically, we take your nonprofit’s financial data and format the information into financial statements that comply with GAAP. We do not do any testing or analytical procedures. A compilation may be appropriate when a nonprofit does not need an audit or a review, but desires to have financial statements prepared by a CPA according to GAAP for outside parties.
We will not make an on-site visit for a compilation. We will ask you to provide the information we need electronically, by emailing the information to us or by or uploading the information to our secure portal.
The Costs of a Compilation?
A compilation is less expensive than a review, and the fee is agreed to in advance and is fixed fee; there no additional "out of pocket" expenses.
What are the deliverables for the review or compilation?
At the conclusion of the review/compilation, your nonprofit will receive:
• A signed PDF version of the review/compilation report,
• Up to 15 hard copies of the review/compilation report (if desired),
• (For a review) A management memorandum that discusses issues identified during the audit process that involve your nonprofit’s financial reporting and internal control processes, with recommendations on how to resolve and/or address the issues, and
• (For a review) A graphical report in PDF format that displays key financial statement information. This graphical report provides a big-picture perspective of financial trends at your nonprofit for the current and prior four years.