A Reviewed Financial Statements is when a CPA performs procedures to obtain limited assurance that there are no material modifications that need to be made to an entity’s financial statements to be in conformity with GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards).
Take into consideration that a review is not as significant as an audit, but it is greater than a compilation. The review doesn’t provide assurance to be aware of all significant matters that would’ve been discovered in an audit. The review is more expensive than a compilation but less expensive than the audit.
The accountant will request certain documents for the analysis like property and equipment listings, inventory listings, bank reconciliations, receivables and payables agings, etc.
We can also help you with compiled financial statements.
A review is respected by the banks but costs significantly less
For a review, we perform a limited examination of the numbers prepared by you. A review offers limited assurance that the organization’s true financial picture does not significantly vary from the information presented. A review is respected by the banks but costs significantly less than an audit.