Compilation | Review | Audit

 
 


Review Services

What is a financial statement review?  A review is performing inquiry and analytical procedures that provide the accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with Generally Accepted Accounting Principles (GAAP) or, if applicable, with an other comprehensive basis of accounting (OCBOA).

The objective of a review differs significantly from the objective of a compilation.  The inquiry and analytical procedures performed in a review should provide the accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the financial statements.  No expression of assurance is contemplated in a compilation.

The objective of a review also differs significantly from the objective of an audit of financial statements in accordance with generally accepted auditing standards (GAAS).  The objective of an audit is to provide a reasonable basis for expressing an opinion regarding the financial statements taken as a whole.  A review does not provide a basis for the expression of such an opinion because a review does not contemplate obtaining an understanding of internal control or assessing control risk; tests of accounting records and of responses to inquiries by obtaining corroborating evidential matter through inspection, observation or confirmation; and certain other procedures ordinarily performed during an audit.  A review may bring to the accountant's attention significant matters affecting the financial statements, but it does not provide assurance that the accountant will become aware of all significant matters that would be disclosed in an audit.

 

 

 

 

 

 



If your company has its own accounting department, your company is believed to have strong internal controls and is not required to provide audited financial statements to a third-party such as a bank, a financial statement review may be a more cost effective way to obtain limited assurance on your company's financial statements.