What are Financial Statement Reviews?
Financial statement reviews are the next level of assurance service below a full audit. A review provides limited assurance to management as to the appropriateness of financial statements and is conducted in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA. A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is a procedures driven engagement with limited assurance provided regarding the financial statements. It is substantially smaller in scope than an audit in accordance with GAAS.
When can a Review Bring Value?
Financial statement reviews can bring tremendous value when management members are looking for limited assurance as to the accuracy and reliability of their financial reporting. With this limited assurance comes more confidence in financial reports and the ability to make more informed and more confident decisions. If you want to be sure that your managerial decisions are driven by accurate and reliable financial data, a financial statement review could be the answer.