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Accountant Review and Compilation Report

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Accountant Review and Compilation Report Powered By Docstoc
					Accountants use Review and Compilation reports as a means of validating processes
along with company-specific and financial data. This report encompasses analytical
procedures, as applied to financial data prepared by management, and additionally
includes company-specific processes and inquiries regarding policies, procedures and
personnel. Both the review and compilation reports are usually preceded by a summary
statement from the accountant addressed to the shareholders, board of directors or
trustees. This document should be used when a company engages an accountant to
prepare or review the company's financial statements.
Sample Accountant’s Review Summary Statement:


Dear Shareholder:

We have reviewed the accompanying combined balance sheet of [insert Company Name] as of
[insert dates], and the related Balance Sheet, Income Statement and Statement of Cash Flows for
the year ended [insert dates], in accordance with Statements on Standards for Accounting and
Review Services, as issued by the American Institute of Certified Public Accountants.

A review consists principally of inquiries of analytical procedures applied to financial data,
company personnel and [insert other relevant items here]. It is substantially smaller in scope than
an audit in accordance with Generally Accepted Auditing Standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a whole. Accordingly,
we do not express such an opinion. All information included in these financial statements is the
representation of the management of the Company.

Based on our review, we are not aware of any material modifications that should be made to the
accompanying financial statements for them to be in conformity with generally accepted
accounting principles.

Sincerely,



Accounting Firm




© Copyright 2011 Docstoc Inc.                                                          2
Accountants Review Components:
To use this template:
(1) Date your template.
(2) Mark each item with a “Yes” or “No” checkmark; if there is an item that is not applicable,
note “N/A” for the item.
(3) Go through the “No” checkmarks, and obtain the necessary information.
(4) All items should be checked as “Yes” or “N/A” before proceeding with the start-up business.

                                Components – Accountants Review

                                                                           Yes           No

1.   Is the Accountant versed in Accounting Principles?                   ______        ______

2.   Does the Accountant understand client’s business/industry?           ______        ______

3.   Do the financial statements comply with GAAP?                        ______        ______
     (Generally Accepted Accounting Principles)

4.   Are all entries booked on the General Ledger?                        ______        ______

5.   Are all General Ledger entries classified correctly?                 ______        ______

6.   Is General Ledger in balance?                                        ______        ______

7.   Are all items in the General Ledger recorded on the Financials?      ______        ______

8.   Are work-papers available for all Balance Sheet items?               ______        ______

9.   Are work-papers available for all Income Statement items?            ______        ______

10. Are work-papers available for all Statement of Cash Flow items?       ______        ______

11. Are work-papers available for Disclosure items?                       ______        ______

12. Has the Accountant signed-off on all work-papers?                     ______        ______

13. Are Personnel files and pay and benefit information available?        ______        ______




© Copyright 2011 Docstoc Inc.                                                       3
Sample Accountant’s Compilation Summary Statement:


Dear Shareholder:

We have compiled the accompanying combined balance sheet of [Insert Company Name] as of
[insert dates], and the related Balance Sheet, Income Statement, and Statement of Cash Flows for
the period ended [insert dates], in accordance with Generally Accepted Accounting Principles, as
issued by the American Institute of Certified Public Accountants.

A compilation is limited to presenting information that is the representation of management, in
the form of financial statements. We have not audited the accompanying Financial Statements
and, accordingly, do not express an opinion or any other form of assurance on these. All
information included in these financial statements is the representation of the management.

				
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Description: Accountants use Review and Compilation reports as a means of validating processes along with company-specific and financial data. This report encompasses analytical procedures, as applied to financial data prepared by management, and additionally includes company-specific processes and inquiries regarding policies, procedures and personnel. Both the review and compilation reports are usually preceded by a summary statement from the accountant addressed to the shareholders, board of directors or trustees. This document should be used when a company engages an accountant to prepare or review the company's financial statements.