In a review engagement, FSI performs analytical procedures and inquiries to determine whether the financial statements require material modifications. We do not test transactions or evaluate internal controls as in an audit, so the assurance level is lower. Reviews are less costly and time‑consuming than audits, making them attractive when full assurance is not required.

Banks and credit unions often require reviewed financial statements for lines of credit, term loans or bond financing. A review provides a CPA’s limited assurance that the statements make sense, which helps lenders assess risk without the cost of an audit.

Yes. Because a review engagement doesn’t include detailed testing, some additional procedures will be necessary to convert a review into an audit. FSI can build upon your reviewed statements if you later need an audit for a larger financing or to meet a higher regulatory threshold.