Review of financial statements

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The review relates to the financial statements and summary financial statements prepared for the period shorter than a year and prepared as at different date than the balance sheet date.

The aim of the review (National Standard on Auditing No. 3 item 7, 8) is to express a position that anything was identified that does not prevent us from concluding that the report is consistent with the accounting principles and truly and fairly presents, in all material respects, the financial position and the result. The auditor should obtain reasonable assurance whether the financial statements are free of material misstatement.

The review usually takes less time than an audit of financial statements, since the scope of the work carried out during the review is substantially less than the scope of the audit. Reviews are usually carried out by analysis of financial data, access to accounts, as well as by obtaining information from the staff and management of the entity. As a result, the review gives reasonable assurance whether it is necessary to make significant adjustments so that the report was correct and reliable.

Following the review, the auditor issues the report, but is not obliged to issue an opinion on the financial statements within the meaning of Art. 65 of the Accounting Act. Reviews of financial statements are useful to both management entity and the auditors, as they allow early detection of irregularities in the accounting system and internal control gaps and allow for an assessment of the financial condition. In addition, information obtained during the inspection may be helpful to the auditor for full-scope audit at the end of the year.