Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company’s management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review doesn’t require us to study and evaluate your company’s internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: “We are not aware of any material modifications” for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures. Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a Accountant’s technical expertise without the work and expense of an audit.
What we will do in Review engagement are:
Performing inquiry and analytical procedures to determine any additional adjustments that may be required
Designing a review program with specific procedures tailored to the individual needs of a business
Coordinating all accounting efforts with the management and internal accounting staff of the business