A limited review of financial statements is an audit restricted to an examination either for a limited period or of a limited part of the records. A review does not contemplate obtaining an understanding of the entity's internal control; assessing fraud risk; tests of accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, confirmation, or the examination of source documents (for example, cancelled checks or bank images); and other procedures ordinarily performed in an audit. Accordingly, a review does not provide assurance that we will become aware of all significant matters that would be disclosed in an audit. Therefore, a review provides only limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with generally accepted accounting principles.
The definition of nonattest services is very inclusive. It includes, for example, preparation of the client's depreciation schedule and preparation of journal entries even if management has approved the journal entries. I have confirmed these examples directly with the AICPA ethics division. The definition of nonattest services includes preparation of tax returns.
Virginia Engagement Letter for Review of Financial Statements by Accounting Firm is a legal agreement between an accounting firm and a client in the state of Virginia. This letter outlines the terms and conditions under which the accounting firm will perform a review of the client's financial statements. The purpose of this engagement letter is to establish the scope of the review engagement and the responsibilities of both the accounting firm and the client. It also serves as a means of communication to ensure clarity and understanding between both parties involved. The Virginia Engagement Letter for Review of Financial Statements typically includes the following key elements: 1. Introduction: The letter begins with a formal introduction stating the names of the accounting firm, its address, and the client's name and address. 2. Objective: It clearly states the objective of the engagement, which is to perform a review of the client's financial statements. The objective may include a specific reporting framework or any additional procedures requested by the client. 3. Responsibilities of the Accounting Firm: This section outlines the responsibilities of the accounting firm during the review engagement. It may include procedures such as evaluating the overall presentation of financial statements, assessing financial statement disclosures, and conducting analytical procedures. 4. Responsibilities of the Client: The letter also includes a section outlining the client's responsibilities during the engagement. This may include providing accurate and complete financial records, ensuring that the financial statements are prepared in accordance with the applicable financial reporting framework, and making management representations. 5. Scope of the Engagement: The scope section specifies the limitations of the review engagement, highlighting that it does not constitute an audit and that the accounting firm will not express an opinion on the financial statements. 6. Reporting: This element describes how the accounting firm plans to communicate the results of the review engagement to the client. It may outline the format and content of the review report, including any required disclosures. 7. Fees: The engagement letter includes information regarding the fees charged by the accounting firm for the review engagement. It outlines the estimated or agreed-upon fees, billing arrangements, and any additional expenses that might be incurred. 8. Termination: This section explains the conditions under which either party can terminate the engagement. It may include provisions for cancellation, withdrawal, or completion of the review engagement. Different types of Virginia Engagement Letters for Review of Financial Statements by an Accounting Firm may include specialized engagement letters designed for specific industries or unique client requirements. For instance, there might be separate engagement letters for nonprofit organizations, government entities, or businesses operating in heavily regulated industries. In conclusion, the Virginia Engagement Letter for Review of Financial Statements by Accounting Firm is a crucial document that establishes the terms and responsibilities of both the accounting firm and the client throughout the review engagement process. It ensures a clear understanding of the objectives, scope, and limitations of the engagement, ultimately promoting transparency and effective communication between both parties.Virginia Engagement Letter for Review of Financial Statements by Accounting Firm is a legal agreement between an accounting firm and a client in the state of Virginia. This letter outlines the terms and conditions under which the accounting firm will perform a review of the client's financial statements. The purpose of this engagement letter is to establish the scope of the review engagement and the responsibilities of both the accounting firm and the client. It also serves as a means of communication to ensure clarity and understanding between both parties involved. The Virginia Engagement Letter for Review of Financial Statements typically includes the following key elements: 1. Introduction: The letter begins with a formal introduction stating the names of the accounting firm, its address, and the client's name and address. 2. Objective: It clearly states the objective of the engagement, which is to perform a review of the client's financial statements. The objective may include a specific reporting framework or any additional procedures requested by the client. 3. Responsibilities of the Accounting Firm: This section outlines the responsibilities of the accounting firm during the review engagement. It may include procedures such as evaluating the overall presentation of financial statements, assessing financial statement disclosures, and conducting analytical procedures. 4. Responsibilities of the Client: The letter also includes a section outlining the client's responsibilities during the engagement. This may include providing accurate and complete financial records, ensuring that the financial statements are prepared in accordance with the applicable financial reporting framework, and making management representations. 5. Scope of the Engagement: The scope section specifies the limitations of the review engagement, highlighting that it does not constitute an audit and that the accounting firm will not express an opinion on the financial statements. 6. Reporting: This element describes how the accounting firm plans to communicate the results of the review engagement to the client. It may outline the format and content of the review report, including any required disclosures. 7. Fees: The engagement letter includes information regarding the fees charged by the accounting firm for the review engagement. It outlines the estimated or agreed-upon fees, billing arrangements, and any additional expenses that might be incurred. 8. Termination: This section explains the conditions under which either party can terminate the engagement. It may include provisions for cancellation, withdrawal, or completion of the review engagement. Different types of Virginia Engagement Letters for Review of Financial Statements by an Accounting Firm may include specialized engagement letters designed for specific industries or unique client requirements. For instance, there might be separate engagement letters for nonprofit organizations, government entities, or businesses operating in heavily regulated industries. In conclusion, the Virginia Engagement Letter for Review of Financial Statements by Accounting Firm is a crucial document that establishes the terms and responsibilities of both the accounting firm and the client throughout the review engagement process. It ensures a clear understanding of the objectives, scope, and limitations of the engagement, ultimately promoting transparency and effective communication between both parties.
