Your bank, an investor or your board has asked for CPA-reported financial statements, and you need to know whether that means a financial statement audit or a review. We help you confirm which one the requirement calls for, then deliver it on a timeline and fee agreed in writing.
A financial statement audit gives reasonable assurance that the statements are free of material misstatement. It is performed under US generally accepted auditing standards (GAAS). The auditor tests balances and transactions, confirms amounts with outside parties, observes or tests key processes, and gains an understanding of internal control relevant to the audit. The result is an opinion on the financial statements.
A review gives limited assurance. It is performed under the Statements on Standards for Accounting and Review Services (SSARS) and consists mainly of analytical procedures and inquiries of management. A review does not involve testing internal control, confirming balances or observing inventory. The report states whether the accountant is aware of any material modifications needed. It is not an opinion.
Lenders often set the level in the loan agreement. A smaller credit line may require reviewed statements, while larger or riskier credit may require an audit. Investors and buyers usually want audited statements before a significant investment or acquisition. Boards may require an audit under the bylaws or as good governance once the organization reaches a certain size.
We read the covenant, agreement or policy that asks for the report.
We agree the timeline and send a document request organized by area.
Audit testing or review procedures, with questions grouped to save your time.
We walk through adjustments, disclosures and any matters for the board.
Final report delivered in time for your lender, investor or board deadline.
We explain the choice between an audit and a review in plain terms, so you do not pay for more assurance than the reader needs, and you do not deliver less than they asked for. Requests are organized and sent early, and you hear about potential issues as soon as we see them, not at the end.
If your statements involve complex areas such as revenue recognition or leases, we will point them out at planning. If we are not your auditor, our audit readiness and technical accounting team can help you prepare.
Yes, as long as your lender or investors accept a review for now. Many companies begin with reviewed statements and move to an audit as debt grows, investors join or a sale gets closer. Plan the switch a few months ahead. A first audit has to test opening balances, and items like inventory counts or older fixed asset records are much easier to support when you know the audit is coming.
No. A review under SSARS is limited to analytical procedures and inquiries of management. An audit under US GAAS requires the auditor to understand internal control relevant to the audit and often tests some controls, though it does not give a separate opinion on them. Either way, if we see a control weakness that matters, we tell management and, where required, the board, along with practical suggestions.
For an audit: the financial statements, footnotes and an auditor's report with an opinion. For a review: the same statements and footnotes with an accountant's review report stating limited assurance. Some loan agreements also ask for a covenant compliance letter or other supplementary information. Check your agreement for these extras early, since they can affect scope and timing.
Most privately held companies report under US GAAP. Some use a special purpose framework, such as the income tax basis, which can be simpler if the reader accepts it. We confirm the framework at the start, explain the trade-offs, and flag GAAP areas such as revenue recognition or leases that may need extra work before fieldwork.
Fees depend on the size and complexity of the business, the condition of the records, the type of engagement and the timeline. Clean, reconciled books cost less to audit. You get a written quote in the proposal before any work begins, and if the scope changes, for example an acquisition during the year, we discuss it with you before doing extra work.
Send us the requirement and your year end. We will confirm whether you need a financial statement audit or a review and quote the work.
When a lender, funder, board or agency needs to rely on your numbers, we give them an independent answer they can trust. Financial statement audits and reviews, nonprofit audits, Single Audits, Yellow Book audits, agreed-upon procedures and 401(k) plan audits, each scoped to the requirement in front of you.
Read moreWalk into your next audit with reconciled accounts, documented judgments and statements that follow US GAAP. We untangle complex transactions, tighten your close and cut the back-and-forth that drives up audit fees.
Read moreNeed specific numbers checked rather than a full audit? We perform the procedures you and your funder, lender or agency agree on, and report exactly what we found.
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