A review audit is an examination of financial statements without dipping into a detailed analysis of the internal control system of a client, an examination with no need to pursue comprehensive procedures as in the case of a full-scale audit.
A review audit includes a restricted spectrum of procedures and activities compared with the audit, and it is aimed to “review” the analysis of an auditable object.
A review involves the assurance by the auditor with a smaller level of certainty concerning the auditable item than an audit.
Based on the examination results an auditor’s opinion is provided in the negative form, containing the thesis: “during the examination, there were no circumstances under which it can be concluded that the presented statements do not present a fair view of the financial position, financial results and financial flows of the enterprise”.
A review of financial statements is not an audit, but it is in demand among our clients. Among the indisputable advantages of a review audit are:
• Lower cost compared with the audit (due to shorter duration, lower labour costs, smaller range of procedures)
• Sufficiency of review audit results for management decision-making
• Opportunity to identify during the review the most “painful” areas with the purpose of preparation for the annual statutory audit