Financial Statements Review
External stakeholders like banks generally require businesses to submit reviewed financial statements. CMA’s extensive experience in giving an assurance that no modifications are necessary to the financial statements generated internally to conform with the financial reporting framework or generally accepted accounting principles (GAAP) will lend confidence to you.
Capabilties
A review can be a cost-effective way to meet the requirements of third parties (such as lenders). By conducting a review, CMA can provide limited assurance about your financial statements. We utilize a variety of diagnostic tools, including analytic procedures, inquiries and general miscellaneous analyses of any items which may appear unusual and require explanation.
In a review engagement, we study the industry in which you operate including the accounting principles and practices generally used in the industry. We also obtain knowledge about your business sufficient to identify areas in the financial statements where it is more likely that material misstatements may arise. We likely perform the following procedures:
Capabilties
- Conduct a ratio analysis with historical, forecasted, and industry results
- Investigate findings that appear to be inconsistent
- Inquire about the procedures for recording accounting transactions
- Investigate unusual or complex situations that may impact reported results
- Investigate significant transactions and journal entries
- Follow up on questions that arose during previous reviews
- Inquire about material events that occurred after the date of the financial statements
- Review communications from regulatory agencies
- Read the financial statements to see if they appear to conform with the applicable financial reporting framework
- Review the management reports of any accountants who reviewed or audited the entity’s financial statements in prior periods