Reviewed financial statements provide limited assurance that material changes to the financial statements are unnecessary. In contrast to a compilation engagement, a review engagement requires the CPA to make inquiries and perform various analytical procedures. These procedures are used to identify accounts or areas where misstatements might occur.

Reviewed financial statements are often required by banks and other lenders, but also provide assurance and useful information to other interested parties including absentee owners.


Sample Accountant’s Review Report

We have reviewed the accompanying balance sheet of ABC Company as of December 31, 20XX, and the related statements of income, retained earnings, and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of ABC Company.

A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.