In accounting what are the differences between Internally Prepared, Compiled, Reviewed and Audited statements?

Question

In Pennsylvania, non-profits have to provide different types of financial statements based on how much money they brought in. I'd like clarification on the differences between these different levels of documentation.

Answer 1

Internally-prepared, compiled, reviewed and audited are descriptions as to how financial statements were prepared and by whom.

In order from least formal (least reliable) to most:

1) Internally-prepared means just that. A company employee prepared the statements without audit or the advice of a public accountant.

2) Compiled - The company brings business records to an accountant who prepares the financial statements. The accountant does not test for accuracy of the records or guarantee proper accounting methods.

3) Reviewed - A public accountant performs some testing to ensure that financial statements are accurate and that proper accounting standards are followed.

4) Audited - This is the most formal and rigorous of the four methods. A public accountant issues a letter saying that the financial statements are accurate and that proper accounting policies and procedures are in place.

I am not exactly sure of the specific differences in the level of review and testing for reviewed and audited statements.

Of course, sometimes audited financial statements turn out to be unreliable.

Hope this helps.

Answer 2

Hi Jon, Our perception of any reality is based on our self creating a belief about that reality. A. An event happen. B. A belief is generated following the event. this belief can be rational or irrational. C. An emotion is generated following the belief, if the belief was rational the emotion would be balanced and appropriate otherwise it can be dis-functional. (R. Ellis) This is one of the three main theories on what psychology is funded. But applying this to God is a different thing, if we want to really know God it must Him Self who reveals it to us, so that our perception of Him will not be corrupted and contaminated by mental misconceptions. That's why those who worship God the way that He wants to be worshipped have also gone through the main two nights of the soul where the mind gets freed from all worldly passions. It sort of brings together solving psychological issues and repenting of sin at the same time. Only a pure heart can worship God in mind, body and spirit. God Bless