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.
A Phoenix Arizona Engagement Letter for Review of Financial Statements is a formal agreement between an accounting firm and a client located in Phoenix, Arizona, where the accounting firm agrees to conduct a review of the client's financial statements. This engagement letter outlines the scope of work, responsibilities, and expectations of both parties. The engagement letter for a review of financial statements in Phoenix, Arizona, typically includes the following key sections: 1. Introduction: This section introduces the parties involved in the engagement, including the accounting firm and the client. It may also provide a brief background of the client's business. 2. Objective: The engagement letter should clearly state the objective of the review, which is to obtain limited assurance that the financial statements are free from material misstatement. 3. Scope of Work: This section outlines the specific procedures to be performed during the review. It may include reviewing the client's financial records, interviewing key personnel, and performing analytical procedures to assess the reasonableness of financial data. 4. Responsibilities of the Accounting Firm: The engagement letter specifies the responsibilities of the accounting firm, including conducting the review in accordance with applicable professional standards and issuing a report based on the findings. 5. Responsibilities of the Client: The client is typically required to provide access to relevant financial records, disclose all necessary information, and cooperate with the accounting firm throughout the review process. 6. Limitations: The engagement letter should include a section highlighting the limitations of a review engagement, emphasizing that the level of assurance provided is lower than an audit. 7. Deliverables: This section specifies the final deliverables, which usually consist of a written report providing the accounting firm's conclusion on the reviewed financial statements. There are no specific variations of a Phoenix Arizona Engagement Letter for Review of Financial Statements based on its types. However, the letter can differ slightly depending on the nature and complexity of the client's business, the size of the engagement, and any specific requirements set by regulatory bodies or industry standards. In conclusion, a Phoenix Arizona Engagement Letter for Review of Financial Statements is an important document that sets the foundation for a review engagement between an accounting firm and its client. It outlines the responsibilities, objectives, scope of work, and limitations of the engagement, ultimately ensuring a transparent and mutually agreed-upon relationship between the two parties.A Phoenix Arizona Engagement Letter for Review of Financial Statements is a formal agreement between an accounting firm and a client located in Phoenix, Arizona, where the accounting firm agrees to conduct a review of the client's financial statements. This engagement letter outlines the scope of work, responsibilities, and expectations of both parties. The engagement letter for a review of financial statements in Phoenix, Arizona, typically includes the following key sections: 1. Introduction: This section introduces the parties involved in the engagement, including the accounting firm and the client. It may also provide a brief background of the client's business. 2. Objective: The engagement letter should clearly state the objective of the review, which is to obtain limited assurance that the financial statements are free from material misstatement. 3. Scope of Work: This section outlines the specific procedures to be performed during the review. It may include reviewing the client's financial records, interviewing key personnel, and performing analytical procedures to assess the reasonableness of financial data. 4. Responsibilities of the Accounting Firm: The engagement letter specifies the responsibilities of the accounting firm, including conducting the review in accordance with applicable professional standards and issuing a report based on the findings. 5. Responsibilities of the Client: The client is typically required to provide access to relevant financial records, disclose all necessary information, and cooperate with the accounting firm throughout the review process. 6. Limitations: The engagement letter should include a section highlighting the limitations of a review engagement, emphasizing that the level of assurance provided is lower than an audit. 7. Deliverables: This section specifies the final deliverables, which usually consist of a written report providing the accounting firm's conclusion on the reviewed financial statements. There are no specific variations of a Phoenix Arizona Engagement Letter for Review of Financial Statements based on its types. However, the letter can differ slightly depending on the nature and complexity of the client's business, the size of the engagement, and any specific requirements set by regulatory bodies or industry standards. In conclusion, a Phoenix Arizona Engagement Letter for Review of Financial Statements is an important document that sets the foundation for a review engagement between an accounting firm and its client. It outlines the responsibilities, objectives, scope of work, and limitations of the engagement, ultimately ensuring a transparent and mutually agreed-upon relationship between the two parties.
