Review – Limited Assurance
A review engagement consists primarily of analytical procedures we apply to the financial statements. Reviews are less extensive than an audit, but more involved than a compilation. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures. A review can be used a good middle ground, providing the advantages of a CPA’s technical expertise without the work and expense of an audit.
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.