Compilation vs. Review vs. Audit for Factoring Companies

In this episode of Sounding Board, host Becky Gibbs, Audit Partner at Boyum Barenscheer, is joined by Kevin McCarty, Audit Manager, to break down the differences between compilations, reviews, and audits, and how each level of service applies to factoring companies.

They walk through what each engagement includes, the level of assurance provided, and how factoring businesses can prepare for each type of financial statement service. The conversation covers common areas of focus such as accounts receivable, reserves and client escrows, allowances for credit losses, internal controls, and key metrics used in factoring, including net funds employed (NFE).

Becky and Kevin also share practical guidance on how to approach year-end readiness, what auditors and accountants look for during each type of engagement, and how factoring companies can use these services to support growth, financing relationships, and long-term success.

This episode is designed for factoring company owners, CFOs, controllers, and operations leaders who want clarity around assurance levels and how to choose the right service for their stage of growth.