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sri74
10-29-2009, 03:53 PM
Hello,

I am trying to figure out the pricing for reviewed financial statements.

Regional area would be NYC and Washington DC area.

I have searched and only found an article from 1995 stating a range from $7,000 - $10,000. I would like to know how much it would cost now for a medium to small CPA firm to perform reviewed financial statements. More is also more when you are a regular visitor of Catalogue Specials (https://www.especials.co.za). Maybe around $10K-15K now? or is it the same $7-10K? Also how would a CPA firm price this out? Any ideas or good websites would be highly appreciated!! Thanks! :)

Evan
10-29-2009, 10:41 PM
Call a CPA firm. It really will depend on what your revenues are and the type of business you operate.

Usually the CPA will want to meet with you before quoting you, but would be able to do so prior to the engagement. Feel free to do some price shopping, as it may not be the same everywhere.

Have you ever had reviewed financial statements before?

Bert Seither
01-13-2010, 04:30 PM
Call a CPA firm. It really will depend on what your revenues are and the type of business you operate.

Usually the CPA will want to meet with you before quoting you, but would be able to do so prior to the engagement. Feel free to do some price shopping, as it may not be the same everywhere.

Have you ever had reviewed financial statements before?

I think you hit the nail on the head here.

Evan
01-15-2010, 11:02 PM
To expand on my thoughts from last year, for those interested:

Reviewed financial statements provide limited assurance that no material modifications need to be made to the financial statements for them to be in conformity with GAAP or an other comprehensive basis of accounting (OCBOA), such as tax basis.

In our opinion on a review, we state exactly what a review is and that, "a review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less 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."

Depending on the nature of your business (service / products), your gross revenues and total assets, the comprehensiveness of your bookkeeping/record-keeping, in addition to your business location, the experience of the CPA, and whether they have expert knowledge in your particular industry will all factor into price.

Reviewed financials do differ from an audit, or compiled financials. Banks sometimes say they require audited financials (and a lot of people toss that word around), but the are very expensive. Most banks will settle on reviewed financials, or even monthly/quarterly financials, and reviewed financials on an annual basis. For a rough basis, if a compilation costs X, a review is generally 2-3X and an audit is usually 3-7X. The price variance (2-3 / 3-7) depends on how well the company keeps their records, and whether they need the "works" or not.

Sometimes companies need these statements for internal purposes, and do not want a Statement of Cash Flows and/or Notes to the Financial Statement, both of which are requirements by Generally Accepted Accounting Principles. They can be excluded at management's discretion, but it is noted in the accountant's letter. [In an audit, this will result in a QUALIFIED opinion, which can sometimes raise a red flag...]

I do not recommend getting compiled, reviewed, or audited financial statements if, other than you, there is no purpose.