Financial Statement Review

Financial Statement Review

Description of Purposes and Deliveries of the service ?

The primary purpose of the service is to implement a review and provide clients with auditors' reports expressing a review opinion on whether any information obtained during the review indicates that the financial statements do not give a true and fair view in accordance with the financial reporting framework.  The assurance level of the review opinion is lower than the audit opinion.

There are four types of conclusion depending on possible effects of matters on the financial statements: (1) Unmodified Conclusion; (2) Qualified Conclusion; (3) Adverse Conclusion; (4) Disclaimer of Conclusion.

Besides, another purpose of the service is to provide the client with "Management Letter" presenting useful recommendations (if any) on (1) deficiencies of the internal control system; (2) risks related to accounting and tax matters; (3) weaknesses in management.

Who are clients of the service?

  • Companies and organizations that are subject to review by law such as listed entities, large public companies.
  • Any companies or organizations that wish to add credibility to the financial statements submitted to stakeholders such as investors, shareholders, suppliers, lenders, business partners. Reviewed financial statements with auditors' report will help clients to earn trust and confidence of stakeholders.

 How is the service delivered?

The service is delivered through the following steps:

  1. Kick-off discussion: we make it clear and agreed with clients about objectives, schedules, cooperation mechanisms, review strategy, responsibilities of each party in the course of the review. This step can be done through email and/or direct discussion.
  2. Planning (at our office): we obtain a comprehensive understanding of clients' business environment and internal control system to assess risks and determine the most effective and efficient approach and resources for the clients.
  3. Fieldwork (at clients’ offices): we perform detailed review procedures basing on the planning work, including (1) analysis of data trends and comparison with industry ratios, (2) inquiries of the management and others within the clients, and (3) additional procedures if we are aware of a matter that causes us to believe the financial statements may be materially misstated.
  4. Review-Finding Discussion: we present and explain our findings and solutions in detail with the management of clients. This step can be done through email and/or direct discussion.
  5. Reporting: we prepare and send draft auditors' reports to clients for review and confirmation, then print & issue the final reports.

Audit Methodology: We apply the risk-based methodology, which strictly meets Standards on Review Engagement and is in accordance with Crowe Global's Audit Manual (where applicable to review engagements).

While processing the work, we always try to apply proper technology and tools to our work to increase automation and efficiency. We believe that technology application will help to improve report quality, deadline commitment, confidentiality, and cost-saving.

How long does the service take?

It depends very much on the scope of work and responses & cooperation from the client.
In reality, we usually manage to finish the service within 2 - 4 weeks in most cases. For urgent circumstances, we may apply special processes and resources together with active cooperation from the client.