A review, while simplified compared to an audit, is still an independent assessment process during which the reliability of financial statements and their compliance with accounting laws and standards are evaluated. The obligation for a review arises from the Auditors Activities Act and may extend to commercial undertakings, foundations, and non-profit organizations if they exceed the review thresholds stipulated by law, which are lower than audit thresholds. It is also a suitable service for companies that do not have a statutory audit or review obligation but still require confirmation of the correctness of their financial statements – for example, for investors, banks, or business partners.
A review is an alternative to an audit – it is a less extensive, yet independent and professional assessment of a company’s annual report. The purpose of a review is to provide moderate assurance that the financial statements do not contain material misstatements or misleading information. Although a review is not as comprehensive as an audit, it still adheres to international review standards and relies on the auditor’s professional judgment and experience.
A review is primarily based on inquiries and analytical procedures, making it more limited in scope than an audit and generally less time-consuming. However, it provides an external independent assessment of financial information and helps enhance the reliability of reporting.
We recommend a review primarily for small and medium-sized enterprises who seek a high-quality, yet more flexible and cost-effective form of independent control.
Whether for a consultation or a price inquiry, we are happy to assist you with both.
A review is suitable for companies that are not legally required to undergo a mandatory audit but still require independent assurance regarding their report – for example:
● medium-sized enterprises whose indicators fall below audit thresholds;
● growth-phase companies looking to enhance credibility with partners or investors;
● companies whose articles of association or contracts stipulate a review obligation;
● foundations or non-profit organizations for whom funders have requested a review.
● Does not involve extensive testing or evaluation of internal control systems.
● Primarily relies on inquiries with management and analytical procedures.
● The scope of work and time commitment are smaller, resulting in a more favorable price.
● The auditor provides an opinion with limited assurance – meaning that no material misstatements were identified, but the thoroughness is not comparable to an audit.
The final document of a review is the report prepared by the auditor. This document is appended to the annual report, which inherently helps strengthen the reliability of the report in the eyes of third parties.
The work focuses on substantive communication with the client, analysis of financial indicators, and significant risk areas. The work is conducted in accordance with the International Standard on Review Engagements (ISRE 2400), and the scope and timeline of the work are agreed upon with the client at the outset. Our goal is to provide clarity and assurance, avoiding unnecessary burden.
All rights reserved © 2025 | Developed by Must Lammas
