Review
A review is a limited examination of financial statements, where an auditor assesses whether the financial statements are prepared in accordance with applicable accounting standards. This typically involves analyzing financial data, reviewing internal controls, and assessing whether additional information or corrections are needed. A review does not provide the same level of assurance as a full audit but can still offer valuable insights into the company's financial condition.
When is a review used?
A review is used when a company or its stakeholders need an independent assessment of the financial statements. This can be a more cost-effective way for smaller companies to gain some assurance that their financial statements are accurate. It is often used when there is a moderate need for confidence among external parties, such as banks, owners, or potential investors.
