What it is
A review is a service that allows an organization to obtain limited assurance that its financial statements are represented fairly, when as a result of the review procedures performed by the auditors, nothing has come to their attention that could suggest any material misstatement.
Unlike in the course of an audit, a review does not conduct an examination of transactions and internal controls. It only ensures that the organization’s financial statements conform to the Generally Accepted Accounting Principles (GAAP).
How it affects your business
A review can be done on a regular basis, such as quarterly, half-yearly, or monthly. If your business is not required to perform an audit by law, you would still need assurance for the integrity of your financial statements. Also, the work effort and cost required to perform a review engagement is less than that required in an audit.
Moreover, a review can be a good middle ground, providing the technical expertise of a CPA, while excluding the work, time and cost of an audit.
If a review indicates significant fluctuations and/or the supporting information is questionable, then further procedures must be performed.
At XB4, we cater to all your organization’s needs. Whether an audit is required by law or not, a review engagement is a good method to make sure that your financial statements are reliable.
Our team of experts will evaluate your business’ accounts and express limited assurance. We do this through:
- Applying analytical procedures to your organization’s financial statements
- Making various inquiries about your personnel and management team
- Ensuring that condensed financial statements have been prepared in accordance with the acceptable financial reporting framework (GAAP)
Reviewed financial statements include all required footnotes and other disclosures.