So many small businesses are unable to afford a full audit. However, thankfully there are many other alternatives for them that most often will suffice and meet the needs they are looking for. I have been surprised how different requirements are depending on the lender or business. A compilation or review would very likely be sufficient for the needs of Ambassador Hardware Co.

I do wonder, does the compilation of financial statements carry significantly more weight when prepared by an auditor than the CPA for the company?

It seems with so little investigative work done for it, there would be little advantage. What are your thoughts?