A review is a higher level of service than a compilation because it results in an expression of limited assurance that the financial statements conform to GAAP. Usually, inquiries and analytical procedures provide the accountant with a reasonable basis for this conclusion. In a review, the accountant has the same responsibilities as a compilation, as well as:
An accountant's independence from the client is required in order to issue a review report on the financial statements. Any direct ownership will impair independence. Community Association Services Compilations - Obtaining information from management in an effort to prepare financial statements. A compilation does not provide assurance that the statements are fairly presented. Financials are formatted in order to be easily read by outside sources. Audits - An examination, on a test basis, in accordance with generally accepted auditing standards, providing reasonable assurance that the financial statements are free of material misstatements. An audit is a formal examination of an organization's accounts or financial situation. Call one of our community association financial representatives at: |
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According to Florida Statute, a community association
with total annual revenues of $200,000 or more, but less than $400,000 must
prepare reviewed financial statements.