CPA Miami _{Certified Public Accountants}

The second level of financial reporting involves the preparation of reviewed financial statements.  Reviewed financial statements are used when the need for audited financial statements is not required.

The purpose of reviewed financial statements is the expression of limited assurance that there are no material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles (GAAP).

The level of assurance provided by reviewed financial statements is significantly less than that of an audit.  In an audit, the auditor’s report provides assurance that there are no material modifications to the financial statements to be in conformance with GAAP.  In a review, the accountants’ report is one of negative assurance where the accountant attests that nothing has come to the attention of the accountant causing such financial statements to be misleading or otherwise incorrectly stated.