Which report do you 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 | Review | Audit | |
|---|---|---|---|
| Assurance | None | Limited | Reasonable |
| What the CPA does | Presents your numbers in financial statement form | Analytical procedures and inquiries of management | Tests transactions and balances, confirms with third parties, evaluates controls |
| Report | Compilation report | Review report | Audit opinion |
| Independence required | No (must be disclosed if not independent) | Yes | Yes |
| Disclosures | Can be omitted if the reader agrees | Required | Required |
| Relative cost and time | Lowest | Middle | Highest |
| Who is asking | Usually accepts |
|---|---|
| Bank or SBA lender, smaller loan | Compilation or review |
| Bank, larger loan or line of credit | Review or audit, per the loan agreement |
| Surety, small bonding program | Compilation or review with a WIP schedule |
| Surety, large bonding program | Audit with a WIP schedule |
| Investors, acquirers | Audit |
| Federal awards of $1,000,000+ (nonprofits) | Single Audit |
| SBA 8(a) program | Audit over $20M receipts; review $7.5M–$20M; in-house or compilation below |
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.
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.
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.
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.
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.
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.
Yes. A compilation can omit substantially all disclosures if the reader agrees, and can be limited to a balance sheet and profit and loss.
For a review or an audit, yes. For a compilation, the CPA can lack independence but must disclose that in the report.
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.
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.