Review of Financial Statements

A review of financial statements by an independent auditor or public accountant involves making inquiries of management and other key personnel of the Company and performing analytical procedures on the financial information to conclude with a limited assurance that the financial statements of a Company are free of material misstatement.

The scope of a review of financial statements includes planning through interviews with management and then, based on the professional judgment of the independent auditor or public accountant, determining the most appropriate procedures to express a conclusion on the Company’s financial statements.

At the end of the procedures executed by the independent auditor or public accountant, a report is prepared to state the conclusions based on the evidence obtained during the execution of the work. 

In the report of a review of the financial statements, the report describes the scope of the assignment, so that the user can understand the nature of the work performed and clarify that an audit has not been performed and, therefore, does not express an audit opinion.