Financial Statements Compilation and Preparation

Do you need your financial statements prepared or compiled by a CPA?

We can help. We provide financial statements compilation and preparation services for small businesses owners.

How it works

Compilations provide the lowest level of assurance. Our service is based on obtaining a general knowledge of the organization and presenting your financial information in the form of financial statements. With data provided by your company, we will summarize your business’s financial statement to assist with decision-making. However, unlike an audit or a review, a compilation provides zero assurance as it does not involve any test or examination of internal control. To perform a reliable compilation, we will inquire about your financial statement. However, the review doesn’t compare the results against you, your investors, or the board’s expectations. This explains why it does not provide any assurance or opinion on your financial statement. Given the informal nature of a compilation engagement, your company can have a degree of involvement in its preparation. You can select any CPA to prepare it, with the caveat that the report states the accountant is not independent.

What we do

Acquire a general understanding of your business, accounting principles, and financial reporting system
Present the financial information in the approved format for financial statements

If you are a small business owner required to have your financial statements prepared or compiled by an independent CPA, please contact us.

Financial Statements Compilation and Preparation

Not for Profit Financial Statements Compilation

What level of assurance does a financial statements compilation provide?

A financial statements compilation offers the lowest level of assurance. It involves summarizing your business’s financial information based on data provided, but it does not include any tests or examinations of internal controls.

How does a compilation differ from an audit or review?

Unlike a review or Financial Statements Audit Service Texas, a compilation does not compare results against your expectations, investors’ expectations, or the board’s expectations. Therefore, it does not provide any assurance or opinion on your financial statement.

Can I be involved in the preparation of a compilation for my company?

Yes, due to the informal nature of a compilation engagement, your company can have a degree of involvement in its preparation. You have the flexibility to choose any CPA for its preparation, but it is important to note that the report will state whether the accountant is independent.

What does the Franchisor financial statements compilation process entail?

During the compilation process, we acquire a general understanding of your business, accounting principles, and financial reporting system. We then present the financial information in the approved format for financial statements.

When is it necessary for a small business owner to have financial statements prepared or compiled by an independent CPA?

If you are a small business owner and there is a requirement for your financial statements to be prepared or compiled by an independent CPA, we encourage you to contact us. We specialize in providing Franchisor financial statements services USA, ensuring compliance and accuracy in your financial reporting.

As a business owner and a mortgage broker/lender, you are reunited to have financial statements audit every year to be in compliance with state and NMLS rules and regulations and to be able to renew your license. Therefore, below are the most common questions about the mortgage brokers/lenders financials statements audits that we get asked from new brokers:

Q1: What are financial statements?

Financial statements are formal documents that provide a summary of a company’s financial activities and status. They typically include the balance sheet, income statement, cash flow statement, and statement of changes in equity. Check out our Financial statements services Financial statement requirements for mortgage brokers

Q2: What is a mortgage broker financial statement audit?

A mortgage broker financial statement audit is a comprehensive examination of the financial statements and records of a mortgage broker by an independent auditor. It ensures that the financial statements accurately reflect the financial position and performance of the mortgage broker. See Financial Statements Audit and Review Requirements for Mortgage Brokers for NMLS Licensing

Q3: Why is a financial statement audit important for mortgage brokers?

A financial statement audit is important for mortgage brokers as it enhances transparency and credibility in their financial reporting. It provides assurance to lenders, investors, and other stakeholders that the financial statements are reliable and comply with accounting standards and regulations.

Q4: Who conducts a mortgage broker financial statement audit?

A mortgage broker financial statement audit is conducted by an independent auditing firm or certified public accountants specialized in auditing financial statements. The auditor must be objective and impartial in their assessment.

Q5: What does a mortgage broker financial statement audit involve?

During a mortgage broker financial statement audit, the auditor examines the mortgage broker’s financial records, transactions, internal controls, and accounting policies. The auditor verifies the accuracy and completeness of financial statements, identifies any irregularities or material misstatements, and provides an opinion on the fairness of the statements.

Q6: How long does a mortgage broker financial statement audit take?

The duration of a mortgage broker financial statement audit varies depending on the size and complexity of the business and the scope of the audit. Generally, it can take several weeks to a few months to complete, including planning, fieldwork, testing, and the issuance of the audit report.

Q7: What are the benefits of a mortgage broker financial statement audit?

A mortgage broker financial statement audit offers several benefits. It enhances the credibility and reliability of financial information, improves trust among lenders and investors, identifies weaknesses in internal controls, and helps prevent fraudulent activities. It also ensures compliance with accounting standards and regulatory requirements.

Q8: Can lenders access the audited financial statements of a mortgage broker?

Lenders often request audited financial statements from mortgage brokers as part of their due diligence process. Audited financial statements provide lenders with a reliable and independent assessment of the mortgage broker’s financial condition and stability.

Q9: Are there any consequences for mortgage brokers who do not conduct a financial statement audit?

While a financial statement audit may not always be legally required for mortgage brokers, not conducting one can have negative consequences. It may erode trust among lenders and investors, hinder access to financing, and raise questions about the accuracy and reliability of financial information.

Q10: How often should a mortgage broker undertake a financial statement audit?

The frequency of financial statement audits for mortgage brokers depends on various factors, such as regulatory requirements, industry best practices, and the size and complexity of the business. In general, auditors recommend conducting an audit annually to ensure accurate and up-to-date financial reporting.

Please note that while this information provides a general understanding of mortgage broker financial statement audits, it is recommended to consult with a financial professional or auditor for specific guidance related to individual situations. If you have any questions, please contact us.