Financial Statement Reviews

The primary purpose of a financial statement review is to provide limited assurance that no material modifications are required for the financial statements to comply with the applicable reporting framework (such as GAAP, Tax, or IFRS). It is a middle-ground engagement between a compilation and a full audit, offering a reasonable basis for the accountant to report that they are not aware of any major changes needed, primarily using analytical procedures and inquiries of company management. A review provides a higher level of assurance than a compilation but is less extensive and less expensive than an audit.

Key Aspects of an AICPA Review:

• Limited Assurance: Unlike an audit, which provides a high level of assurance, a review provides a lower level of comfort, confirming that nothing came to the accountant’s attention indicating the statements are not in compliance with the appropriate reporting framework.
• Procedures Performed: The CPA performs analytical procedures and inquiries, such as comparing current and prior-year data, reviewing account relationships, and discussing operations with management.
• No Internal Control Testing: Unlike an audit, a review does not require the CPA to understand internal controls, assess fraud risk, or verify data through third-party confirmations.
• Independence Required: A CPA must be independent to perform a review engagement.
• Purpose for Stakeholders: These reviews are often requested by lenders, investors, or creditors for assurance that the financial data is accurate without the high cost of a full audit.

Financial Statement Review Experience

Whipplewood CPAs have experience providing financial statement reviews for businesses and organizations in Denver and across Colorado. Our audit professionals have years of experience assisting companies with financial statement assurance. Our combination of technical expertise and practical experience translates into a straightforward, deadline-driven, process. Whether this is a first-time review or you have been undergoing one for years, Whipplewood CPAs stand ready to assist.