Wasatch Front Financial Statement Review Services
A financial statement review is a CPA engagement that provides limited assurance on your company’s financial statements. The CPA performs inquiries and analytical procedures to determine whether they are aware of any material modifications needed for the financial statements to conform with the applicable financial reporting framework.
A request for reviewed financial statements doesn’t always explain exactly what’s needed. You may not know whether a review will satisfy the lender, board, or other party asking for the statements, or whether they actually require an audit. At CMP, we sort that out before the engagement begins so you don’t pay for the wrong level of service.
Is a Review Enough, or Do You Need an Audit?
A review is enough when the requesting party accepts limited assurance. If a lender, investor, contract, or governing agreement specifically requires an audit, reviewed financial statements won’t satisfy that requirement.
| Financial Statement Review | Financial Statement Audit |
|---|---|
| Provides limited assurance | Provides reasonable assurance |
| Primarily uses inquiries and analytical procedures | Includes risk assessment, selected testing, and evidence evaluation |
| Issues a review conclusion | Issues an auditor’s opinion |
| Appropriate when the requesting party accepts limited assurance | Required when the requesting party specifically asks for an audit |
Start with the written request. Look for terms such as “audited financial statements,” “reviewed financial statements,” or “CPA-prepared financial statements.”
If the wording is unclear, we can help you confirm what the requesting party will accept. This may involve communicating directly with the lender, investor, bonding company, or other third party.
If the requesting party specifically requires audited financial statements, a review won’t satisfy that requirement. If they don’t require assurance, CPA-prepared financial statements may be enough.
For a complete comparison, read our guide to audit vs. review vs. compilation
When a Review Is the Right Level
A financial statement review may be appropriate when an outside party needs CPA assurance but doesn’t require the extensive procedures or formal opinion provided by an audit.
You may need reviewed financial statements for:
- A lender or loan covenant
- A line of credit or financing request
- An investor or outside owner
- A board or governing agreement
- A bonding company or surety
- Periodic financial reporting to another third party
Reviews are also common when a growing business moves beyond compiled statements. A lender may request reviewed financial statements when the company applies for additional financing or a larger line of credit. An investor or board may also ask for them to gain greater confidence in the company’s financial reporting.
Free 15-Minute Assessment
Not sure whether you need an audit, review, or compilation?
If you’re not sure what the request calls for, send it to us. We’ll help you confirm the service level, reporting period, and deadline before the engagement begins.
What a CMP Review Involves
We perform financial statement reviews under the applicable AICPA Statements on Standards for Accounting and Review Services.
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Confirm the Requirement
We identify who needs the statements, which period they must cover, the applicable reporting framework and basis of accounting, and when they are due.
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Provide a Fee Estimate and Engagement Letter
We prepare a fee estimate based on the scope of the engagement, then draft and provide an engagement letter for your review and signature before work begins.
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Understand Your Business
We learn about your operations, accounting practices, and significant financial changes during the reporting period.
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Perform the Review
We ask management questions and analyze financial trends, ratios, balances, and unusual changes.
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Issue the Review Report
We resolve open questions, discuss proposed adjustments, and issue the financial statements with our review report.
A review doesn’t include the extensive testing performed during an audit. If something appears incomplete or inconsistent, we may perform additional procedures to understand and resolve the issue.
Management remains responsible for the financial statements and the records used to prepare them.
Why Companies Choose CMP for Reviews
CMP has served businesses for nearly 50 years. When you work with us on a review, you’ll have direct access to the professionals leading your engagement and a clear picture of where things stand.
Dustin Wood and Tara Williams lead our financial statement assurance work and bring nearly 39 years of combined experience. Because they work across audits, reviews, and compilations, they can help you confirm whether a review is the appropriate level of service before the engagement begins.
We serve clients from our offices in Logan, Layton, and St. George, Utah, and work with companies nationwide through secure document sharing and remote meetings.
Explore our complete range of audit and assurance services
Meet Our Financial Statement Review Team
Dustin and Tara lead our review engagements and work directly with clients and their accounting teams.
Dustin is an Audit Partner in our Logan office and has been with CMP since 2005. He specializes in compilations, reviews, and audits of financial statements. He serves clients in agriculture, banking, construction, manufacturing, trucking and transportation, employee benefit plans, and captive insurance.
Tara is an Assurance Partner in our Logan office and has been with CMP since 2010. She specializes in compilations, reviews, and audits of financial statements. She serves clients in agriculture, banking, construction, manufacturing, trucking and transportation, employee benefit plans, and captive insurance.
Frequently Asked Questions About Financial Statement Reviews
What Is a Reviewed Financial Statement?
In a financial statement review, an independent CPA performs inquiries and analytical procedures and issues a report stating whether the CPA is aware of any material modifications needed for the statements to conform with the applicable financial reporting framework.
How Is a Review Different From an Audit?
A review provides limited assurance through inquiries and analytical procedures. An audit involves more extensive procedures and provides reasonable assurance through an auditor’s opinion.
Does a Review Verify Every Transaction?
No. A review is not designed to verify every transaction. The CPA evaluates the financial statements using questions, comparisons, financial ratios, trend analysis, and other analytical procedures.
Can Reviewed Financial Statements Omit Disclosures?
Reviewed financial statements generally include the disclosures required by the applicable reporting framework. Disclosures may be omitted in limited circumstances, but the omission must be properly indicated and must not be intended to mislead users.
The requesting party should also confirm that it will accept statements without complete disclosures.
Who Can Perform a Financial Statement Review?
A financial statement review should be performed by a licensed CPA who is independent of the company and follows the applicable professional standards.
How Much Does a Financial Statement Review Cost?
Review fees vary based on the company, reporting period, the applicable reporting framework and basis of accounting, the condition of the accounting records, and the scope of the requirement. Because pricing depends so much on the specifics of each engagement, we provide a fee estimate and engagement letter after reviewing the request and learning more about your business.
Is a Financial Statement Review Enough?
A review may be enough when a lender, board, investor, or other third party wants CPA assurance but doesn’t require an audit. If you’re unsure, send us the request. We’ll confirm whether a review meets the requirement, explain what information we’ll need, and walk you through how the engagement works.
Ready When You Are
Talk directly with a CMP CPA about your audit, review, or compilation requirement.
