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.
Mecklenburg North Carolina Engagement Letter for Review of Financial Statements by Accounting Firm Description: Mecklenburg County, located in the state of North Carolina, is home to several accounting firms that offer services for reviewing financial statements. An engagement letter, which serves as a formal agreement between the accounting firm and their client, outlines the scope of the review and the responsibilities of each party involved. An engagement letter for the review of financial statements in Mecklenburg, North Carolina, typically includes key details such as the name of the accounting firm, the client's name, and the time period covered by the review. The letter may also specify the type of review being conducted, which can vary based on the client's needs and regulatory requirements. Different Types of Mecklenburg North Carolina Engagement Letters for Review of Financial Statements by Accounting Firms: 1. Performance Review Engagement Letter: This type of engagement letter is used when the accounting firm performs a review of the client's financial statements to determine whether they are in accordance with generally accepted accounting principles (GAAP) or any other applicable framework. The letter ensures that the accounting firm will conduct the review with due professional care. 2. Compliance Review Engagement Letter: In cases where the client requires a review to ensure compliance with specific regulations or contractual obligations, this type of engagement letter is used. It entails focusing on the client's adherence to industry-specific guidelines or legal requirements, such as those set by governing bodies or grant agreements. 3. Limited Scope Review Engagement Letter: When the accounting firm is engaged to review specific elements of the client's financial statements rather than the entire set, a limited scope engagement letter is employed. It outlines the precisely defined areas or accounts that will be subjected to review, providing a more cost-effective and targeted solution. 4. Agreed-Upon Procedures Engagement Letter: In situations where the client needs a review based on specific procedures agreed upon by both parties, an agreed-upon procedures engagement letter is utilized. This letter clearly specifies the procedures to be performed by the accounting firm and includes the findings and results of the review based on those procedures. Mecklenburg County in North Carolina offers a range of engagement letter options for accounting firms to cater to the diverse needs of clients seeking a review of their financial statements. These engagement letters provide a formal framework to establish the understanding between the firm and the client, ensuring a transparent and professional approach to the review process.Mecklenburg North Carolina Engagement Letter for Review of Financial Statements by Accounting Firm Description: Mecklenburg County, located in the state of North Carolina, is home to several accounting firms that offer services for reviewing financial statements. An engagement letter, which serves as a formal agreement between the accounting firm and their client, outlines the scope of the review and the responsibilities of each party involved. An engagement letter for the review of financial statements in Mecklenburg, North Carolina, typically includes key details such as the name of the accounting firm, the client's name, and the time period covered by the review. The letter may also specify the type of review being conducted, which can vary based on the client's needs and regulatory requirements. Different Types of Mecklenburg North Carolina Engagement Letters for Review of Financial Statements by Accounting Firms: 1. Performance Review Engagement Letter: This type of engagement letter is used when the accounting firm performs a review of the client's financial statements to determine whether they are in accordance with generally accepted accounting principles (GAAP) or any other applicable framework. The letter ensures that the accounting firm will conduct the review with due professional care. 2. Compliance Review Engagement Letter: In cases where the client requires a review to ensure compliance with specific regulations or contractual obligations, this type of engagement letter is used. It entails focusing on the client's adherence to industry-specific guidelines or legal requirements, such as those set by governing bodies or grant agreements. 3. Limited Scope Review Engagement Letter: When the accounting firm is engaged to review specific elements of the client's financial statements rather than the entire set, a limited scope engagement letter is employed. It outlines the precisely defined areas or accounts that will be subjected to review, providing a more cost-effective and targeted solution. 4. Agreed-Upon Procedures Engagement Letter: In situations where the client needs a review based on specific procedures agreed upon by both parties, an agreed-upon procedures engagement letter is utilized. This letter clearly specifies the procedures to be performed by the accounting firm and includes the findings and results of the review based on those procedures. Mecklenburg County in North Carolina offers a range of engagement letter options for accounting firms to cater to the diverse needs of clients seeking a review of their financial statements. These engagement letters provide a formal framework to establish the understanding between the firm and the client, ensuring a transparent and professional approach to the review process.
