Review of the financial statements
Review of the financial statements
About reviewing the financial statements
Assurance without an extensive audit.
Like the audit, a review engagement falls under ‘assurance engagements’. The difference is that an audit engagement provides a ‘reasonable level of assurance’ and a review engagement provides ‘a limited level of assurance’. A review engagement can provide a limited level of assurance for the financial statements if there is no need or necessity to perform an audit.
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Performing a review engagement largely consists of gathering information, including information pertaining to how the figures are established, to substantiate the opinion.
Gathering and analyzing this information together with you also provides valuable insights into your organization.
We would be happy to inform you about the possibilities for performing a review engagement for your organization.
A review engagement consists of a number of phases.
1. Planning phase – Getting acquainted and preparing
We start with a personal introduction and an inventory of your organization, objectives and administrative processes. This allows us to tailor our work to your situation.
2. Risk analysis and review approach – Focus on relevant topics
Based on discussions and document analysis, we determine which components require extra attention. We draw up a review approach that focuses on the main risks in your financial reporting.
3. Information gathering – Insight through dialogue and analysis
In this phase, we conduct interviews with management and analyze financial information and underlying documents. We test the figures based on trends, ratios and comparisons
4. Analysis and assessment – Objective substantiation of the figures
We assess the information obtained and draw conclusions about the reliability of the financial statements. In doing so, we look at whether the figures match reality and are consistent with previous periods.
5. Completion and reporting – Clear communication
After completing our work, we discuss our findings with you and provide the review report.
Personal approach
Frequently asked questions
What is a review of the annual accounts?
A review of the financial statements is an assurance engagement in which the accountant provides a limited level of assurance about the figures.
When do I opt for a review instead of an audit?
A review is suitable when there is no statutory audit requirement, but you still want more certainty than with, for example, a compilation report.
A review report may also be required in connection with specific laws and regulations, such as for notaries or in connection with obtaining subsidies.
What exactly does 'limited level of assurance' mean?
The work involved in a review engagement is less extensive than in an audit with a reasonable level of assurance. Therefore, the accountant does not give a positive opinion (‘it is true and fair’), but a negative conclusion, such as ‘nothing has come to our attention that it is not true and fair’.
How does a review engagement proceed in practice?
The activities mainly consist of gathering information, analyzing figures and assessing explanations. We conduct interviews with management, analyze trends and compare results with previous years.
What are the benefits of a review?
A review report increases confidence among stakeholders such as shareholders, financiers and grant providers. Moreover, it offers you valuable insights into your financial position and business operations.
How long does a review of the financial statements take?
That depends on the size and complexity of your organization. On average, a review takes several weeks, including preparation and reporting. We always coordinate this with you in advance so that it fits within your planning.
What does a review of the annual accounts cost?
The costs depend on the nature and size of your organization. We work with a transparent, customized quote, so you know exactly what to expect, without any surprises afterwards.
Working together on trust and clarity.
Marten Bouma
Partner
Does our vision of a personal approach appeal to you? Would you like to know what we can do for your organization? Please feel free to contact us, we would be happy to talk to you.