A review report expresses limited assurance that there are no material modifications that should be made to a set of financial statements in order for them to be in conformity with Generally Accepted Accounting Principles.
In a review engagement, we perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications to be made to the financial statements for them to be in accordance with Generally Accepted Accounting Principles.
A review includes primarily applying analytical procedures to an association’s financial reports, then inquiring of an association’s management. A review is substantially less in scope than an audit. A review is not designed to provide an opinion on the financial statements taken as a whole. We therefore do not express an opinion on the financial statements.
Assuming we are able to complete our review, our conclusion includes that we are not aware of any material modifications that should be made to the financial statements, based on our review, in order for them to be in accordance with Generally Accepted Accounting Principles.
As you can see, a review is a lower scope engagement than an audit. We do not express an opinion on the financial statements.
Reports we provide to our clients at the conclusion of a review engagement:
- Independent Accountant’s Review Report (including financial statements and notes to the financial statements)
- Representation letter
- Proposed adjusting journal entries
Upon your approval of the reviewed financial statements and representation letter, we provide the board of directors with the final review report and financial statements.