Asked by: Laurea Anistratenko
business and finance mergers and acquisitions

Do you have to be independent to perform a review?

Last Updated: 17th June, 2020

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The report attached to the financial statement emphasizes that the service is a compilation. While independence is required at the other levels of service, the CPA does not have to be independent of your organization to perform a compilation. The report must state that the accountant is not independent.

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Furthermore, do you need to be independent for a review?

A review is narrower in scope than an audit. A review is useful when management is seeking greater confidence in financial statements for the purpose of evaluating results and making key organization decisions. A CPA must be independent to perform a review engagement.

Beside above, who can sign off independent reviews? In terms of the Companies Regulations "Accounting Officers" can conduct independent reviews for the following entities: Private companies and owner managed entities with a Public Interest Score(PIS) of less than 100 and below; and Voluntary Independent Review for Owner managed entities with PIS up to 349.

Thereof, what is the difference between an audit and an independent review?

An audit requires an independent auditing team comprised of qualified auditors to review financial statements via various in-depth procedures. It therefore carries higher authority than a review. As an audit requires far more detailed investigation into a business's financial statements, it is a more expensive option.

What is the difference between a compilation and a review?

A review requires some testing of the information, while a compilation almost entirely relies on the presented information. Understanding of internal control. The auditor only tests the internal controls of the client in an audit; no testing is conducted for a review or a compilation. Work performed.

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