We review financial statements and condensed financial statements covering a period shorter than the financial year and prepared at a different time than the balance sheet date. It may be an alternative to an audit of financial statements where such audit is not mandatory.
The purpose of a review of financial statements is to express the auditor’s opinion that compliance of the financial statements with accounting policies is not prevented by anything. Additionally, it allows determination of credibility and fairness, in all material aspects, of the company’s assets and financial standing. Following the review of the financial statements, the certified auditor issues a report.
The reviews of financial statements are helpful for the company’s executives as well as for certified auditors. They allow early detection of irregularities in the accounting system and gaps in internal control and enable assessment of the company’s financial standing. In addition, the auditor may use the information gathered during the review for a full year-end audit of the financial statements.