What Type of Assurance Do Reviewed Financial Statements Provide?

March 8, 2016

Often as a CPA I am asked to adapt banking statements for my clients. The basal purpose is to acquaint those that wish to accept the affairs of a business in a architecture that can be readily compared to added agnate entities.

Reviewed banking statements accommodate a bound akin of affirmation that the statements accommodated the requirements of the US GAAP and are chargeless of actual misstatements or apocryphal or missing information. To accomplish the review, I will access a accepted compassionate of: the organization’s industry as able-bodied as advice about their operations, products, and services, their accounting records, abilities of their accounting personnel, the accounting base on which the banking abstracts are presented, and the anatomy and agreeable of the banking statements. Again I analysis the advice supplied by the applicant and accomplish specific inquiries apropos to accounting policies, almanac befitting and accounting practices, accomplishments of the Board of Directors, and changes in business activities. The specific inquiries appropriate to accomplish a analysis should abode the afterward areas: accompanying affair transactions; accounting policies, problems, and areas of greater risk; uncertainties, contingent, accepted and abiding liabilities and assets; abilities of accounting cadre and analysis of accounting duties; inventory; any departures from GAAP; revenues, expenses, accounts receivable, banknote and disinterestedness accounts, and investments; and property, plant, and accessories assets and liabilities.

As a Certified Public Accountant I have to access a reasonable base for cogent bound affirmation about the attributes of the banking statements. This agency I will administer assorted analytic procedures to analyze abnormal items or trends in the statements that may charge explanation. If any actual errors or misstatements are noted, again I will altercate these items with the organization’s administration for description or adjustments to the banking statements.

Upon achievement of a review, I will affair a address that provides bound affirmation that the advised statements are chargeless of actual misstatements or false/missing advice and are begin to be accurate, complete and adequately presented to accommodated the requirements of the US GAAP. Since the statements were advised and not audited, no assessment about their attributes is expressed. The address aswell addendum that the banking abstracts are a representation of management.