Review of Financial Statements

This chapter discusses how to perform a review of financial statements in accordance with Statements on Standards for Accounting and Review Services (SSARS). AR-C section 90 applies when the accountant is engaged to perform a review of financial statements. When performing a review of financial statements, the accountant's objective is to obtain limited assurance as a basis for reporting whether the accountant is aware of any material modifications that should be made to the financial statements for them to be in accordance with the applicable financial reporting framework, primarily through the performance of inquiry and analytical procedures. A review engagement is substantially less in scope than an audit engagement, the objective of which is the expression of an opinion regarding the financial statements as a whole. An accountant performing a review of financial statements of a U.S. entity is required to follow the review standards as promulgated by the AICPA Accounting and Review Services Committee.