Reviewed Financial Statements are when a CPA takes your interim or annual financial statements and performs procedures to obtain limited assurance that there are no material modifications that need to be made to an entity’s financial statements in order for them to be properly presented and conform to generally accepted accounting principles (GAAP) within the United States.
In a review engagement, we obtain the limited assurance required by making inquiries of management and designing and performing analytical procedures on the financial data.
Reviewed Financial Statements must be performed by a licensed CPA firm in accordance with Statements on Standards for Accounting and Review Services. Based on our review of your financial statements, we provide you the comfort you need and expect from a thorough review procedure.
How do Reviewed Financial Statements differ from an Audit?
Reviewed Financial Statements differ significantly from an Audit, as Review engagements provide significantly less assurance to the reader of the financial statements because the CPA is not required to perform many of the standard and acceptable procedures required in an Audit.
Examples of some of the Review procedures required to be performed in a Reviewed Financial Statements engagement are:
✎ Procedures for recording and accumulating financial information
✎ Consideration of expectations developed by the CPA of recorded amounts
✎ Review of all relevant information by the CPA
✎ Inquires of management
✎ Discovery of existence of fraud or malfeasance
✎ Performance of analytical procedures regarding comparisons
✎ Review of benchmarks and ratios from recorded amounts
✎ Review of plausible relationships of recorded amounts
✎ Review of information related to any significant subsequent events
What Services Don’t We Provide in a Review?
Unlike an audit, we do not have to assess fraud risk, test accounting records, or get an understanding of internal controls or other types of audit procedures.
What Services Do We Provide in a Review?
We design and perform inquiries and analytical procedures in addition to our services provided in a compilation.
We are Careful and Meticulous
We make sure to focus a little more attention in pertinent areas where the risk of misstatement increases. In the case that we do find misstatements, we either disclose in the report or withdraw from the review.
We Have the Experience and Knowledge Behind Us
A review requires that we have sufficient knowledge of your industry and entity to properly review your statements. Our knowledgeable CPA’s stand behind 10 years of experience to guarantee that we provide you a thorough and accurate reviewed financial statement.
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