SBA & Lending · Which report?
Audit vs. Review vs. Compilation: Which Does Your Lender Need?
Three levels of CPA work, explained, so you don't pay for more than your lender requires.

Which report do you need?

Audit, review or compilation: which one does your lender actually need?

A compilation, a review and an audit are three levels of CPA work on your financial statements. A compilation gives no assurance: the CPA presents your numbers as financial statements. A review gives limited assurance, based mainly on analytical procedures and inquiry. An audit gives reasonable assurance, based on testing and outside confirmation, and ends with an opinion.

The right level is the lowest one the person relying on your statements will accept. Banks often accept a compilation or review for smaller loans, while larger loans, sureties for big bonding programs, investors and federal programs usually require an audit. Your loan agreement, bond requirements or investor documents usually say which.

Last reviewed: November 2026

Compilation vs. review vs. audit

CompilationReviewAudit
AssuranceNoneLimitedReasonable
What the CPA doesPresents your numbers in financial statement formAnalytical procedures and inquiries of managementTests transactions and balances, confirms with third parties, evaluates controls
ReportCompilation reportReview reportAudit opinion
Independence requiredNo (must be disclosed if not independent)YesYes
DisclosuresCan be omitted if the reader agreesRequiredRequired
Relative cost and timeLowestMiddleHighest

Which level do banks, sureties and investors usually want?

Who is askingUsually accepts
Bank or SBA lender, smaller loanCompilation or review
Bank, larger loan or line of creditReview or audit, per the loan agreement
Surety, small bonding programCompilation or review with a WIP schedule
Surety, large bonding programAudit with a WIP schedule
Investors, acquirersAudit
Federal awards of $1,000,000+ (nonprofits)Single Audit
SBA 8(a) programAudit over $20M receipts; review $7.5M–$20M; in-house or compilation below

When a compilation is enough

A compilation is often enough when the reader just wants CPA-prepared statements and doesn't need assurance, for example smaller bank loans, annual lender reporting, or internal use. It can be limited to a balance sheet and profit and loss, and footnote disclosures can be omitted if the lender agrees, which keeps the cost down. See our compilation service.

When you need a review

A review adds limited assurance: the CPA performs analytical procedures and inquiries and reports whether anything suggests the statements need material changes. It is common for mid-size loans, smaller bonding programs and lenders that want more than a compilation without the cost of an audit.

When you need an audit

An audit is required when the reader needs the highest level of assurance: larger loans and covenants, big bonding programs, investors and acquirers, many state and federal programs. The CPA tests transactions, confirms balances with banks and customers, observes inventory and evaluates internal controls before issuing an opinion.

Moving up a level

Lenders and sureties often ask you to move from a compilation to a review, or a review to an audit, as you grow. The first year at a higher level takes more work, especially for opening balances, so plan the change a year ahead when you can.

Why clients ask us which one they need

  • Fixed fee, agreed first. No hourly billing and no surprise invoices.
  • Senior people on your file. Every engagement is led by a senior professional and signed off by a CPA partner. Meet the team.
  • Licensed and registered. Virginia Board of Accountancy firm license #134961, AICPA member, with out-of-state registrations where required. See our credentials.

Related

Audit vs. review vs. compilation FAQs

What is the difference between an audit, a review and a compilation?

A compilation gives no assurance and presents your numbers as financial statements. A review gives limited assurance based on analytical procedures and inquiry. An audit gives reasonable assurance based on testing and confirmations and ends with an opinion.

Which one does my bank need?

Your loan agreement or commitment letter says. Banks often accept a compilation or review for smaller loans and require an audit for larger loans or lines with financial covenants.

Can a compilation leave out footnotes?

Yes. A compilation can omit substantially all disclosures if the reader agrees, and can be limited to a balance sheet and profit and loss.

Does the CPA need to be independent?

For a review or an audit, yes. For a compilation, the CPA can lack independence but must disclose that in the report.

How do your fees work?

We quote one fixed fee in writing for the level you need, and we'll tell you if a lower level would satisfy your lender.

Not sure which report you need?

Send us your lender's or surety's request. A senior CPA will tell you which level satisfies it and send a fixed-fee proposal within 1–3 business days.