The Review engagement is designed to provide financial statements that reflect management’s representation of the organization’s historical financial condition and events (or other financial data), with a level of assurance that is less than that resulting from an audit engagement. The Review engagement is often used as an alternative to the audit engagement because it provides to management a more practical, and sometimes more affordable, means of achieving a desired level of limited assurance in contrast to the more extensive audit engagement.
In a Review engagement we assist in the preparation and review of financial statements to determine whether they are a credible representation of the organization’s historical financial condition and operating results. The conclusions of our review are presented in a standard review report, which provides limited assurances, where applicable, that the financial statements are not misleading and the information presented therein conforms to generally accepted accounting principles.
Review engagement procedures include inquiries of management relating to accounting practices, policies and principles, and about the procedures for recording and classifying financial information. We also apply certain analytical procedures to the organization’s financial information to identify balances, relationships, or trends that suggest areas of financial performance that may warrant further scrutiny and inquiry.
Our industry-tailored Review engagement techniques, forms, and software programs streamline the routine functions of the Review process, giving us the tools to be more responsive to your changing needs. Our clients’ financial records are maintained in a “paperless” computer-based environment. We encourage use of electronic copies of client records to minimize manual procedures and increase Review engagement efficiency.
We believe the Review engagement is a sound alternative for third-party financial reporting where assurances of an audit engagement are not required. Please contact us to explore how a Review engagement can be tailored to meet your assurance needs.