Who asks an online brand for CPA financial statements
- Banks. A line of credit or term loan usually has a reporting covenant naming compiled, reviewed or audited annual statements. See financial statements for a bank loan.
- SBA lenders. SBA lenders follow SBA’s SOP 50 10 and their own credit policy. The lender tells you what level of statements it needs.
- Inventory and asset-based lenders. Lenders that advance against inventory care most about whether the inventory exists and is valued correctly.
- Investors and boards. Equity investors often require annual audits in the investment documents.
- Buyers. An acquirer may ask for audited or reviewed history, or run its own quality of earnings work. See selling your e-commerce business.
What makes e-commerce statements harder to audit or review
- Inventory in many places. Your warehouse, a 3PL, Amazon fulfillment centers and goods in transit. When inventory is material, the auditor attends a physical count unless that is impracticable (AU-C 501; see the AICPA’s guidance on observing inventory counts).
- Landed cost. Inventory should carry freight-in, duties and tariffs (26 CFR 1.471-3 for tax; GAAP is similar). Tariff swings in 2025 and 2026 make unit costs change between shipments. See tariffs, landed cost and COGS.
- Platform revenue. Revenue must be gross of fees, with refunds, chargebacks, discounts and sales tax handled correctly. Revenue built from net deposits fails testing. See Shopify payouts reconciliation.
- Reserves and platform balances. Cash held by Shopify, Amazon or PayPal at year-end is an asset that needs support.
- Pending tariff refunds. Whether to record an IEEPA refund receivable depends on the facts. See tariff refund taxes.
How to get ready
- Read the covenant. Confirm the level (compilation, review or audit), the framework (GAAP or tax basis) and the due date.
- Close the books monthly. Payouts cleared, bank and platform balances reconciled, inventory rolled forward.
- Plan the inventory count. Set the count date and locations with your auditor before year-end. Get 3PL and Amazon inventory reports for the same date.
- Document landed cost. Keep supplier invoices, freight bills and CBP entry summaries by shipment.
- Fix history if needed. A first audit needs support for opening balances. See your first financial statement audit.
For the differences in plain English, see compilation and review services and audit vs review vs compilation.
How it works with us
Best for: e-commerce and DTC brands that need statements for a bank line, inventory financing, an SBA loan, investors or a buyer.
- Free initial consultation. Share the lender or investor request and how your inventory and channels are set up.
- Fees quoted upfront, in writing. Transparent, fair fees in an engagement letter before work starts.
- Independence check and planning. We confirm we can accept the engagement and plan inventory and revenue procedures.
- Fieldwork, virtually. We work from your platform, 3PL and bank data, with a planned count.
- Report. A compilation, review or audit report your lender or investor can rely on.
See also our small business audit services and E-commerce accounting services.
Compilation vs review vs audit for e-commerce
| Compilation | Review | Audit | |
|---|---|---|---|
| Assurance | None. CPA presents your statements (AR-C 80) | Limited assurance (AR-C 90) | Reasonable assurance (AU-C standards) |
| Who usually asks | Smaller bank lines, internal use | Many bank lines and SBA lenders | Larger inventory facilities, investors, some acquirers |
| Inventory procedures | None beyond reading the statements | Inquiry and analytics (turnover, margin) | Count observation when material, cost testing, 3PL confirmations |
| Platform revenue procedures | None | Analytics and inquiry about payouts and refunds | Order-to-payout-to-bank testing, cutoff, refunds and chargebacks |
| Independence required | No, but must be disclosed if impaired | Yes | Yes |
| What drives the timeline | Clean year-end books | Clean books and answers to inquiries | Inventory count timing, platform data access, opening balances |
Expert CPAs. Personal attention.
Lender or investor asking for reviewed or audited statements? Send us the request and talk to a CPA in a free initial consultation.
Frequently asked questions
A review is a CPA engagement under the AICPA’s SSARS (AR-C 90) that gives limited assurance. The CPA makes inquiries and performs analytical procedures on your statements, then issues a review report. It is less work than an audit and does not include observing your inventory count. Your loan agreement says which level you need.
The lender decides. Smaller lines of credit often accept compiled or reviewed statements. Larger asset-based or inventory facilities, institutional investors and some acquirers ask for audited statements. Read the reporting covenant in your term sheet, and ask before you sign if it is unclear.
When inventory is material, auditing standards (AU-C 501) call for the auditor to attend a physical count unless that is impracticable. For goods held by Amazon or a 3PL, auditors often add confirmations from the warehouse, test the inventory reports, and use alternative procedures. Plan the count date with your auditor before year-end.
Auditors usually trace platform order data to payouts and payouts to the bank, test refunds and chargebacks, check that sales tax collected is not counted as revenue, and test cutoff around year-end. Clean payout reconciliations make this much easier.
Often yes, but independence rules limit what the same firm can do. Preparing your tax return is generally allowed. Keeping your books or making management decisions can impair independence for a review or audit. We check independence before we accept an engagement.
It depends on how clean the books are, how inventory is tracked and where it is held, and how fast you can produce reports. A first audit also needs evidence for opening balances. Starting before year-end, with a planned inventory count, helps the most.
We work with e-commerce brands nationwide, virtually. Where an engagement involves another state, we confirm licensing and practice-mobility rules before accepting it.
Sources
- AICPA: Statements on Standards for Accounting and Review Services (AR-C 80, AR-C 90)
- AICPA: Statements on Auditing Standards, currently effective (incl. AU-C 501)
- AICPA: Observing inventory counts virtually (AU-C 501)
- AICPA: Guide to financial statement services: compilation, review and audit
- SBA: SOP 50 10, Lender and Development Company Loan Programs
- 26 CFR 1.471-3: Inventories at cost
General information as of October 18, 2026. Tax rules change; talk to a CPA about your situation.