A controller’s eye. A CPA’s report.
Financial statements for Texas contractors and small businesses, prepared, compiled, or reviewed under AICPA standards (SSARS). Compilation and review reports are signed by the principal CPA.
What you will receive.
Preparation
Statements with no report. Each page states that no assurance is provided.
Compilation
Statements with a compilation report. No assurance. If we keep the borrower’s books, the report says our independence is impaired.
Review
Statements with a review report. Limited assurance, from inquiry and analytical procedures. A review requires our independence from the borrower.
We do not perform audits. When your policy requires audited statements, the borrower needs a separate firm. The full comparison is on the financial statements page.
Your request sets the level.
The level is your decision, not ours. Put four things in the request to the borrower: the level, the basis of accounting (cash, tax, or GAAP), the period, and whether a work-in-progress schedule goes with the statements. We confirm the level at intake. When the request calls for an audit, we say so.
For sureties and bonding agents.
For contractors, the statements can carry a work-in-progress schedule and percentage-of-completion revenue as supplementary information. Requests come through the contractor. See construction.
How release works.
- The borrower engages us.Our client is the business, not the lender.
- The borrower authorizes release.The authorization names you, and we send the report directly to you.
- Questions go to the principal CPA.On a scheduled call. The borrower’s authorization has to be on file before we discuss their statements.