What is a review report?

During a review performed in accordance with Statements on Standards for Accounting and Review Services (SSARS), an accountant obtains limited assurance that material changes to the financial statements are not necessary in order for the financial statements to be in conformity with Generally Accepted Accounting Principles (GAAP). The end product of a review is the CPA’s report on the accompanying financial statements. The CPA’s report states the scope of the CPA’s work (for example, which financial statements have been reviewed) and provides a statement that the CPA is not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with GAAP. In performing a review, the CPA performs inquiries and analytical procedures designed to identify unusual items or trends that may need further explanation by management. Essentially, the review is designed to determine whether the financial statements make sense without applying audit-like procedures