What is a financial statement review and when is it worth conducting one?
A financial statement review involves a statutory auditor performing analytical procedures and making enquiries of the entity’s management. Its purpose is to determine whether the financial statements contain any material misstatements. Unlike a full audit, a review does not provide absolute assurance, but it does provide limited assurance, which in many situations is sufficient and cost-effective.
A review is particularly useful when:
– Your company is not subject to a statutory audit requirement, but you want greater assurance over the accuracy of your financial data.
– You are preparing interim financial statements or a report for a bank, investor or management board.
– You are planning a transaction and need a quick review of the data before making a decision.
– You want to monitor your company’s financial position regularly without the full scope of an audit.
Quick verification without a full audit.
You receive a reliable assessment of your financial data in less time and with less effort. It is an ideal solution when you need reliable financial information but are not required to undergo a full audit.
Be prepared for questions from investors and banks.
A financial statement review provides you with a document supporting the reliability of your financial data – a valuable asset in discussions with banks, investors or potential business partners.
Early detection of irregularities.
Regular reviews help identify discrepancies and potential errors before they develop into serious financial or legal issues.
