Glossary
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Reviewed Financial Statement
« Back to Glossary IndexAccountant-reviewed financial statements undergo a less rigorous level of examination compared to audited financial statements. In a review engagement, an accountant assesses the financial statements to ensure they are plausible, free from obvious errors or inconsistencies, and conform with accounting standards. However, a review does not involve verification of account balances, confirmation with third parties, or detailed testing of transactions. The accountant provides limited assurance that no material modifications are needed for the financial statements to be in conformity with GAAP or another relevant reporting framework. Reviewed financial statements are typically requested by lenders, creditors, or stakeholders who require a higher level of assurance than a notice-to-reader report but do not need the full assurance provided by an audit.
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