CPA (Certified Public Accountant) reviews and CPA compilations are two different services you can receive from an accountant. Knowing the difference between these two services will ensure that you get the report that you need.

Misconceptions

A common misconception is that any time a CPA prepares financial statements, the CPA is responsible for the contents of the reports. A CPA is not responsible for a compilation and has limited responsibility for a review.

Similarities

A CPA review and a CPA compilation are both only available for companies that are not publicly traded. Neither report requires that the CPA understand and assess a company's internal control system.

Differences

A CPA will not perform any analytical procedures on a compilation--they will simply report the numbers based on your financial records. A compilation doesn't have to have footnote disclosures, which are a required element in reviewed financial statements.

Assurance

A CPA does not provide any assurance on a compilation, meaning he is not responsible for the contents of the report. A CPA review provides limited assurance, meaning that analytical and inquiry procedures will be performed to make an assessment of the financial statements.

Warning

Make sure you understand what you need. If you have to submit your financial statements to a licensing body, lender or potential buyer, a compilation may not be enough information. You could need a review or a full blown audit.

Source:

Media CPAs: What is the difference between a review vs. a compilation vs. an audit?

Ben Yasgar