Overview
A financial review provides limited assurance on financial statements and is less extensive than a full audit. Understanding what a financial review involves helps businesses prepare appropriately and interpret the findings effectively.
How a Review Differs From an Audit
Unlike a full audit, a review relies primarily on analytical procedures and inquiry rather than extensive testing of underlying transactions. This makes it faster and less costly, though the level of assurance provided is correspondingly more limited.
What the Process Involves
A typical financial review includes analytical procedures comparing current and prior period results, inquiries of management about significant transactions and estimates, a review of significant accounting policies applied, and a report expressing limited (rather than reasonable) assurance.
Preparing for a Review
Businesses can make the review process smoother by ensuring financial statements are substantially complete before the review begins, being ready to explain significant fluctuations or unusual transactions, and having supporting schedules available for key balances.
How We Can Help
Our assurance team performs financial reviews tailored to the needs of lenders, investors, and management, providing a practical level of assurance without the scope of a full audit.
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