Assurance Services
Financial Statement Review Services
The Accounting Firm LLC provides financial statement review services to businesses and nonprofit organizations in Alexandria, Virginia, and the surrounding area.
A financial statement review provides limited assurance through procedures consisting primarily of inquiry and analytical procedures. The engagement results in an independent accountant’s review report stating whether the accountant is aware of material modifications needed for the financial statements to be in accordance with the applicable financial reporting framework.
When You May Need a Financial Statement Review
A financial statement review may be appropriate when an organization needs independent accountant involvement with its financial statements but an audit is not required.
- Lender Requirements — Some lenders accept reviewed financial statements as part of their financing or reporting requirements.
- Owners and Investors — Owners and investors may request reviewed financial statements to obtain limited assurance over financial reporting.
- Nonprofit Organizations — Nonprofit boards or funders may accept reviewed financial statements when an audit is not required.
- Contractual Requirements — Certain agreements may specify that reviewed financial statements must be provided.
Clients should confirm the required level of financial reporting with the requesting party before beginning the engagement.
Our Financial Statement Review Services
Our review engagements involve obtaining an understanding of the organization and its accounting practices, making inquiries of management, and performing analytical procedures on financial information.
We evaluate significant changes, unusual relationships, and other matters identified during the review, perform additional procedures when required, and obtain the applicable written representations from management. A review is substantially less extensive than an audit and does not result in an audit opinion.
What You Receive
At the conclusion of the engagement, clients receive an independent accountant’s review report accompanying the reviewed financial statements, including the related notes. The report communicates the accountant’s conclusion based on the procedures performed.
A review provides limited assurance rather than the reasonable assurance associated with an audit. Management remains responsible for the financial statements and related accounting information.
Frequently asked questions
What is a financial statement review?
A financial statement review is an engagement in which an independent accountant performs primarily inquiry and analytical procedures to obtain limited assurance.
The accountant issues a review report communicating whether any material modifications are known to be necessary for the financial statements to be in accordance with the applicable financial reporting framework.
Will my lender accept reviewed financial statements?
Some lenders accept reviewed financial statements, while others require audited financial statements. The requirement depends on the lender and the applicable loan agreement.
We recommend confirming the required level of reporting before the engagement begins.
What information is needed for a financial statement review?
A review generally requires financial statements or a trial balance, supporting accounting records, and management’s explanations of significant financial changes and unusual items.
We provide a tailored document request list for each engagement.
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Discuss Your Financial Statement Review Needs
Schedule a consultation to discuss whether a financial statement review meets your reporting requirements.