Sometimes You Don't Need A Full Audit, An Accountant's Review May Be All You Need

The combined financial statements for the year ending on a particular date

, in combination with the accountants review report is submitted to the Board of Directors and Stockholders to certify that the accompanying financial statements such as the Balance Sheet have been reviewed and found to be in compliance with Statements on Standards for Accounting and Review Services as issued by the American Institute of Certified Public Accountants. Every piece of accounting information contained in the financial statements of the company has been found to be the true representations of the management of the Company.

The main purpose of the accountants review report is to primarily inquire about the company's personnel as well as to apply analysis through certain procedures to the financial data of the company and draw reasonable conclusions about the state of the company's financial affairs. Though quite exhaustive by nature, it is not quite as thorough and complete as a full fledged audit that may have been undertaken, according to accepted auditing standards in order to arrive at a considered opinion regarding the financial statements, taken in its complete entirety. The accountants review report does not express such an opinion.

The accountants review report may be required to make a statement stating that according to the review that has been made, there may or may not be need to modify the financial statements to bring them into line with accepted accounting principles. The review may be made for expressing an assurance about the financial statements taken in their entirety, and all additional data presented such as the balance sheet, income and retained earnings statement for the date when the financial year ends, may form the basis for analysis but are not a requisite element of the basic financial statements.

The accountants review report is basically meant to inquire and have analytical procedures that are to be applied with regard to the financial statements of the company as well as stating the need, if any, of making modifications to make these statements conform to acceptable accounting standards.

The financial statements presented in the report are the combined balance sheet of the company on a particular date, the combined statement of income and retained earnings, combined statement of cash flows and a combined statement of shareholders equity. The financial statements may highlight some pertinent information including results of operations, total loans outstanding, loan delinquencies, gross investment earnings, total salaries and payroll expenses as well as the credit rating of the company from institutions such as Standard & Poor's.

With so much information that needs to be divulged and that too, in strict adherence to the accepted norms for submitting the accountants review report, it may end up becoming a tedious and time consuming as well as expensive chore to prepare the review report and so, to save hours on end researching information that has already been researched by qualified and expert professionals, it may be wiser to simply purchase the draft document from a vendor and get the heavy workload off the chest, without much expense and lesser qualms. All that it is going to cost is less than thirty dollars and a ready to use accountants review report will be usable for immediate use, thus complying with time constraints and fewer overheads.

by: Wade Anderson

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