Audit & Assurance
The right level of service is the least one that satisfies everyone who will read the statements. Often that is a review, not an audit.
Goldenthal & Suss Consulting P.C. prepares, compiles, and reviews financial statements for businesses and nonprofits under the AICPA's Statements on Standards for Accounting and Review Services (SSARS). A review provides limited assurance, based mainly on analytical procedures and inquiry, that no material changes are needed to the financial statements; a compilation presents management's information in financial statement form without providing any assurance. Both cost substantially less than an audit, and for many lenders, owners, and charities registered in New York and New Jersey they are all that is required.
A review is the middle level of service. The CPA performs analytical procedures — comparing results to prior years, budgets, and expectations — and makes inquiries of management, then reports whether they are aware of any material modifications needed. There is no testing of individual transactions, no confirmations, and no evaluation of internal control. The CPA must be independent.
A compilation provides no assurance at all. The CPA presents the financial statements in proper form and reads them for obvious errors, but does not verify the numbers. Compilations suit owners and smaller lenders who want professionally presented statements without the cost of assurance.
For nonprofits registered with New York's Charities Bureau, a CPA review is the required level of service for organizations with total revenue and support between $250,000 and $1 million; above $1 million an audit is required. For businesses, many bank covenants require a review below a certain loan size and an audit above it.
If you are paying for an audit, it is worth checking whether anyone actually requires one. If you are being asked to move from a review to an audit, it is worth knowing what is driving the change.
Often, yes — many lenders require reviewed statements for smaller credit facilities and audited statements only above a certain loan size. The answer is in your loan agreement's financial-reporting covenant. If it is unclear, ask your banker before engaging; the price difference between a review and an audit is significant.
Under Executive Law § 172-b, a charity registered with the New York Attorney General needs a CPA review report when total revenue and support is more than $250,000 but not more than $1 million, and an audit above $1 million. Below $250,000, unaudited financial statements are generally sufficient, though funders may require more.
No. A CPA may compile financial statements without being independent, provided the lack of independence is disclosed in the compilation report. A review does require independence.
Sources & review
SSARS (AR-C 70 preparation, AR-C 80 compilation, AR-C 90 review). NY thresholds per Exec Law § 172-b as verified 2026-08-20. Reviewed 2026-10-01. Thresholds and deadlines change — confirm current requirements before relying on them.
Tell us about your organization and the deadline you are working toward. We will tell you what the engagement involves and what it costs.
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