· FINANCIAL REVIEW · LIMITED ASSURANCE · INDEPENDENT VERIFICATION
A Middle Ground Between a Compilation and a Full Audit
A financial statement review sits between a compilation and an audit, providing meaningful independent assurance through analytical procedures and inquiries, without the full testing and verification that an audit requires.
Jarrard, Nowell & Russell, LLC is a separate entity from Archer Lewis, LLC. Jarrard, Nowell & Russell, LLC provide attest and assurance services. Jarrard, Nowell & Russell, LLC create independent, objective assessments to give stakeholders confidence in financial reporting. Services include non profit audits, private company audits, employee benefit plan audits, reviews, compilations, agreed upon procedures, and prepared financials. These services are performed under professional standards established by the AICPA and require a high level of independence.
Our Approach
The right level of credibility for lenders and partners.
A review engagement provides limited assurance: the accountant performs analytical procedures and makes inquiries of management, and concludes whether anything has come to their attention that suggests the financial statements aren't fairly presented. It's more rigorous than a compilation and provides more credibility to outside parties, but it's less comprehensive than an audit. For many lenders, private investors, and business partners, a review is exactly what they require, and it's typically faster and less costly than a full audit. Archer Lewis conducts reviews efficiently and communicates clearly, so your stakeholders get the assurance they need on a timeline that works.
What's Included
What a financial statement review covers
A review involves more independent work than a compilation, but is scoped differently from an audit. Here's what the engagement includes.
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Analytical Procedures
Comparison of current period financial data to prior periods, budgets, and industry benchmarks, identifying unusual relationships that warrant further inquiry.
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Management Inquiries
Structured inquiries of management about significant accounting policies, unusual transactions, and events that could affect the financial statements.
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Financial Statement Preparation & Review
Financial statements prepared accurately and reviewed for compliance with applicable accounting standards.
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Review Report
Independent accountant's review report expressing limited assurance that nothing has come to our attention suggesting material misstatement.
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Disclosure Review
Notes to financial statements reviewed for completeness and accuracy, ensuring required disclosures are present and correct.
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Going Concern Assessment
Evaluation of whether conditions exist that raise substantial doubt about the organization's ability to continue as a going concern.
A review gives lenders and partners meaningful assurance on a shorter timeline.
Many lenders and private investors require reviewed financial statements for mid-sized loans and investments, where a compilation doesn't provide enough credibility but a full audit would be more than the situation warrants. Archer Lewis conducts reviews efficiently, giving your stakeholders what they need without holding up your transaction or reporting cycle.
Talk to an Assurance Specialist
Common Questions
What organizations ask about financial statement reviews.
A review provides limited assurance through analytical procedures and inquiries. The accountant concludes whether anything has come to their attention suggesting material misstatement. An audit provides reasonable assurance through independent testing, confirmation, and verification, a higher and more comprehensive standard. Reviews are faster and less costly than audits but provide less assurance.
When your lender, investor, or business partner requires independent assurance, not just professionally prepared statements. Many mid-market lenders require reviewed statements for loans above certain thresholds. If you're not sure what your situation requires, we'll tell you before the engagement starts.
Typically two to four weeks for most organizations, depending on the quality of records and how quickly management responds to inquiries. Reviews are generally faster than audits because the scope is more limited. We provide a timeline estimate at the start of the engagement.
A review doesn't include the internal control testing that an audit does. If control issues come to our attention during the review procedures, we'll communicate them, but a review isn't designed to provide comprehensive assessment of internal controls. An audit provides that level of evaluation.
Yes. Some organizations start with reviews and move to audits as their lender requirements or organizational complexity increases. When that transition happens, we plan the first audit to build efficiently on the review work we already know about your organization.
