What is a Review?
Similar to an audit, but less in scope, a review provides a client with the limited assurance that the accountant is not aware of any material modifications that should be made to the financial statements to be in conformity with the applicable accounting framework.
Privately-held companies often ask for reviews from Whalen & Company, CPAs at the request of banks, creditors or other interested parties.
- The review process consists of performing an inquiry into financial statement-related matters such as: accounting principles and practices, record keeping practices, accounting policies, actions of the board of directors and changes in business activity.
- The analysis studies certain relationships such as: performance in comparison to prior years, ratio analysis, and reasonability. The report would state that it provides a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the financial statements to conform with GAAP.
- A review does not include any statement of understanding of an organization’s internal controls, fraud risk, testing of accounting records or other procedures performed in a full audit.
Contact Whalen & Company, CPAs today to learn more!