In a financial statement review, the accountant provides limited assurance that no material changes are needed to make the financial statements compliant with financial reporting guidelines.
A review is significantly different from an audit and provides less assurance to the reader. The accountant doesn’t perform many audit procedures.
Some of the procedures of a financial statement review may include:
- Reviewing the company’s accounting practices and principles
- Identifying procedures for recording financial information
- Discussing management’s responsibility for internal control
- Inquiring about significant transactions
- Investigating inconsistent findings
- Investigating unusual or complex situations that may impact reported results
- Reviewing communications from regulatory agencies
- Analyzing ratios of recorded amounts
Without going through a complete audit, a review engagement is an attractive proposition for a company wanting to provide immediate assurance about its financial picture. A review provides limited assurance that no material modifications are needed for financial statements to conform with generally accepted accounting principles.
When you engage our professional accountants at Rise CPA to prepare a financial statements review, you can expect the same high level of professionalism and attention we strive to deliver in all client engagements. Having the mark of a respected accounting firm on your financial statements is especially beneficial when approaching institutions for financing. In addition, you can use the results of our review to shed light on how you can run your business more efficiently.
A financial statements review offers clear benefits:
- Identifies areas that may require additional evaluation or investigation
- Illustrates opportunities for improving and enhancing financial and operational processes
- Offers limited assurance to stakeholders, potential investors, and financial institutions
- Positions the company as being serious about its financial future