The Accounting Review covers an assortment of subjects related to accountancy. It is published bi-monthly by the American Accounting Association. In addition, members and non-members of the association might submit articles for publication. The Accounting Review was first dispatched by William Andrew Paton in 1926.
What Happens During a Review?
- During a review, the auditor examines the financial statements however doesn’t examine the nonprofit’s internal controls. Instead, the study gives a limited level of affirmation that the financial statements are free of misrepresentations. The auditor’s report, after a review, will note whether the auditor knows about any “material modifications” that ought to be made to the financial statements. The report, after a review, is not considered to give a professional opinion about the nonprofit’s financial information. The critical contrast between a review and an audit is that conducting an audit requires the auditor to acquire independent confirmation or verification of the financial information examined.
A review contrasts significantly with an audit. Review engagements give less assurance to the reader of the financial statements because the CPA doesn’t perform many audit procedures. On the other hand, a review costs less than an audit and, as a result, is regularly viewed as the preferred option, especially for beginning-stage, high-growth organizations with limited operating capital.
The primary challenge with the Accounting Review
The issue is that a review gives only limited assurance and is substantially narrower in scope when contrasted with an audit, as the CPA firm designs and performs analytical procedures, inquiries, and other procedures only as deemed necessary, dependent on its understanding of the industry and client. A review doesn’t comprise an investigation of the entity’s internal control system or its risk of fraud, which could be an area of interest for bankers and investors who are providing/lending.