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Illustrative Accountant’s Review Reports on Financial Statements
The illustrative accountant’s review reports presented below are intended as illustrations that may
be used to comply with the requirements of AR-C section 90A. The accountant’s review report
will vary according to individual requirements and circumstances.
In February 2020, the AICPA Accounting and Review Services Committee (ARSC) issued
Statement on Standards for Accounting and Review Services (SSARS) No. 25, Materiality in a
Review of Financial Statements and Adverse Conclusions. SSARS No. 25 is effective for reviews
of financial statements for periods ending on or after December 15, 2021. Early implementation is
permitted. For practitioners who have elected to early implement SSARS No. 25, a gray shaded
box is presented to provide requirements pursuant to SSARS No. 25.
Introduction
Illustration 1 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America When a Review Has Been Performed
for Both Periods
Illustration 2 — An Accountant’s Review Report on Single Year Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America
Illustration 3 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With the AICPA’s Financial Reporting
Framework for Small- and Medium-Sized Entities
Illustration 4 — An Accountant’s Review Report on Single Year Financial
Statements Prepared in Accordance With the Tax Basis of Accounting
Illustration 5 — An Accountant’s Review Report on Single Year Financial
Statements Prepared in Accordance With a Contractual Basis of Accounting
Illustration 6 — An Accountant’s Review Report on Interim Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America
Illustration 7 — An Accountant’s Review Report on Comparative Financial
Statements Disclosing a Departure From Accounting Principles Generally
Accepted in the United States of America
Illustration 8 — An Accountant’s Review Report on Comparative Financial
Statements Disclosing a Departure From the Tax Basis of Accounting that Affects
Only the Current Year
©2020, Association. Unauthorized copying prohibited.
Illustration 9 — An Accountant’s Review Report on Comparative Consolidated
Financial Statements in Which the Accountant Makes Reference to the Work of
Other Accountants Who Reviewed the Financial Statements of a Significant
Component in Accordance With Statements on Standards for Accounting and
Review Services
Illustration 10 — An Accountant’s Review Report on Comparative Financial
Statements, all Required Supplementary Information Accompanies the Financial
Statements, and the Accountant Reviewed the Required Supplementary
Information
Illustration 11 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America, and the Review Is Performed in
Accordance With Both Statements on Standards for Accounting and Review
Services and International Standard on Review Engagements 2400 (Revised)
Issued by the International Auditing and Assurance Standards Board
Illustration 12 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With International Financial Reporting
Standards as Issued by the International Accounting Standards Board and the
Review Is Performed in Accordance With Both Statements on Standards for
Accounting and Review Services and International Standard on Review
Engagements 2400 (Revised) Issued by the International Auditing and Assurance
Standards Board
Illustration 13 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With a Financial Reporting Framework
Generally Accepted in Another Country
Illustration 14 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America When the Financial Statements of the
Prior Year Were Audited
Illustration 15 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America When the Accountant’s Report on the
Prior Period Includes a Changed Reference to a Departure From Accounting
Principles Generally Accepted in the United States of America
Illustration 16 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America When the Prior Period Financial
Statements Were Reviewed by a Predecessor Accountant and the Predecessor’s
Report Is Not Presented
Illustration 17 — An Accountant’s Review Report on Comparative Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America When the Prior Period Financial
Statements Were Reviewed by a Predecessor Accountant, the Predecessor
©2020, Association. Unauthorized copying prohibited.
Accountant’s Report Is Not Presented, and the Successor Accountant Is Engaged
to Review the Restatement Adjustment(s).
Illustration 18 — An Accountant’s Review Report on Comparative Consolidated
Financial Statements Prepared in Accordance With Accounting Principles
Generally Accepted in the United States of America in Which the Accountant
Makes Reference to the Review of the Financial Statements of a Significant
Component Prepared Using the Same Financial Reporting Framework as That
Used for the Financial Statements of the Reporting Entity and Performed by the
Other Accountant in Accordance With Statements on Standards for Accounting
and Review Services
Illustration 19 — An Accountant’s Review Report on Single Year Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America, Supplementary Information
Accompanies the Reviewed Financial Statements, and the Accountant Subjected
the Supplementary Information to the Review Procedures Applied in the
Accountant’s Review of the Basic Financial Statements
Illustration 20 — An Accountant’s Review Report on Single Year Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America, Supplementary Information
Accompanies the Reviewed Financial Statements, and the Accountant Subjected
the Supplementary Information to the Review Procedures Applied in the
Accountant’s Review of the Basic Financial Statements. The Financial Statements
Contain a Departure From Accounting Principles Generally Accepted in the
United States of America Which Impacts the Presentation of the Supplementary
Information in Relation to the Financial Statements
Illustration 21 — An Accountant’s Review Report on Single Year Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America, Supplementary Information
Accompanies the Reviewed Financial Statements and the Accountant Did Not
Subject the Supplementary Information to the Review Procedures Applied in the
Accountant’s Review of the Basic Financial Statements
Illustration 22 — An Accountant’s Review Report on Single Year Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America, Supplementary Information Is
Presented on the Face of the Reviewed Financial Statements, and the Accountant
Did Not Subject the Supplementary Information to the Review Procedures
Applied in the Accountant’s Review of the Basic Financial Statements
Illustration 23 — An Accountant’s Review Report on Single Year Financial
Statements Prepared in Accordance With Accounting Principles Generally
Accepted in the United States of America Containing an Adverse Conclusion Due
to a Misstatement of the Financial Statements That Is Both Material and Pervasive
to the Financial Statements
©2020, Association. Unauthorized copying prohibited.
Illustration 1 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America When a Review Has Been Performed for Both Periods
Circumstances include the following:
• Review of a complete set of comparative financial statements.
• The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheets as of December 31, 20X2 and 20X1, and the related
statements of income, changes in stockholders’ equity, and cash flows for the years then
ended, and the related notes to the financial statements. A review includes primarily
applying analytical procedures to management’s (owners’) financial data and making
inquiries of company management (owners). A review is substantially less in scope than
an audit, the objective of which is the expression of an opinion regarding the financial
statements as a whole. Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
©2020, Association. Unauthorized copying prohibited.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 2 — An Accountant’s Review Report on Single Year Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America
Circumstances include the following:
• Review of a complete set of financial statements (single year).
• The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheet as of December 31, 20X2, and the related statements of
income, changes in stockholders’ equity, and cash flows for the year then ended, and the
related notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
©2020, Association. Unauthorized copying prohibited.
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 3 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With the AICPA’s Financial Reporting Framework for Small-
and Medium-Sized Entities
Circumstances include the following:
• Review of a complete set of comparative financial statements.
• The financial statements are prepared in accordance with the AICPA’s Financial
Reporting Framework for Small- and Medium-Sized Entities (that is, a special
purpose framework)
• Management has a choice of financial reporting frameworks.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the statements of financial position as of December 31, 20X2 and 20X1 and the
related statements of operations and cash flows for the years then ended, and the related
notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with the AICPA’s Financial Reporting
Framework for Small- and Medium-Sized Entities; this includes determining that the
AICPA’s Financial Reporting Framework for Small- and Medium-Sized Entities is an
acceptable basis for the preparation of financial statements in the circumstances.
Management (Owners) is (are) also responsible for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement whether due to fraud or
error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
©2020, Association. Unauthorized copying prohibited.
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with the AICPA’s Financial Reporting
Framework for Small- and Medium-Sized Entities. I (We) believe that the results of my
(our) procedures provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with the AICPA’s Financial Reporting Framework for Small- and Medium-
Sized Entities.
Basis of Accounting
I (We) draw attention to Note X of the financial statements, which describes the basis of
accounting. The financial statements are prepared in accordance with the AICPA’s
Financial Reporting Framework for Small- and Medium-Sized Entities, which is a basis
of accounting other than accounting principles generally accepted in the United States of
America. My (Our) conclusion is not modified with respect to this matter.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 4 — An Accountant’s Review Report on Single Year Financial Statements
Prepared in Accordance With the Tax Basis of Accounting
Circumstances include the following:
• Review of a complete set of financial statements (single year).
• The financial statements are of a partnership and prepared in accordance with the
basis of accounting the partnership uses for income tax purposes (that is, a special
purpose framework).
• Management has a choice of financial reporting frameworks.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Partnership, which
comprise the statement of assets, liabilities, and partners’ capital — tax basis as of
December 31, 20X2, and the related statements of revenue and expenses — tax basis, and
partners’ capital — tax basis for the year then ended, and the related notes to the financial
statements. A review includes primarily applying analytical procedures to management’s
(partners’) financial data and making inquiries of partnership management (owners). A
review is substantially less in scope than an audit, the objective of which is the expression
of an opinion regarding the financial statement as a whole. Accordingly, I (we) do not
express such an opinion.
©2020, Association. Unauthorized copying prohibited.
Management’s Responsibility for the Financial Statements
Management (Partners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with the basis of accounting the partnership uses
for income tax purposes; this includes determining that the basis of accounting the
partnership uses for income tax purposes is an acceptable basis for the preparation of
financial statements in the circumstances. Management (Partners) is (are) also
responsible for the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with the basis of accounting the partnership uses
for income tax purposes. I (We) believe that the results of my (our) procedures provide a
reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Partnership and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with the basis of accounting the partnership uses for income tax purposes.
Basis of Accounting
I (We) draw attention to Note X of the financial statements, which describes the basis of
accounting. The financial statements are prepared in accordance with the basis of
accounting the partnership uses for income tax purposes, which is a basis of accounting
other than accounting principles generally accepted in the United States of America. My
(Our) conclusion is not modified with respect to this matter.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 5 — An Accountant’s Review Report on Single Year Financial Statements
Prepared in Accordance With a Contractual Basis of Accounting
Circumstances include the following:
• Review of a complete set of financial statements (single year).
• The financial statements are prepared in accordance with a contractual basis of
accounting (that is, a special purpose framework) to comply with the provisions
of that contract.
©2020, Association. Unauthorized copying prohibited.
• Based on the provisions of the contract, management does not have a choice of
financial reporting frameworks.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of ABC Company, which
comprise the assets and liabilities — contractual basis as of December 31, 20X2, and the
revenue and expenses — contractual basis, changes in equity — contractual basis, and
cash flows — contractual basis for the year then ended, and the related notes to the
financial statements. A review includes primarily applying analytical procedures to
management’s (partners’) financial data and making inquiries of company management
(owners). A review is substantially less in scope than an audit, the objective of which is
the expression of an opinion regarding the financial statement as a whole. Accordingly, I
(we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with the financial reporting provisions of Section
Z of the contract between ABC Company and DEF Company dated January 1, 20X2 (the
contract). Management (Owners) is (are) also responsible for the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or
error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with the financial reporting provisions of Section
Z of the contract. I (We) believe that the results of my (our) procedures provide a
reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with the financial reporting provisions of Section Z of the contract.
Basis of Accounting
I (We) draw attention to Note X of the financial statements, which describes the basis of
accounting. The financial statements are prepared in accordance with the financial
reporting provisions of Section Z of the contract, which is a basis of accounting other
©2020, Association. Unauthorized copying prohibited.
than accounting principles generally accepted in the United States of America, to comply
with the financial reporting provisions of the contract referred to above. My (Our)
conclusion is not modified with respect to this matter.
Restriction on Use
My (Our) report is intended solely for the information and use of ABC Company and
DEF Company and is not intended to be and should not be used by anyone other than
these specified parties.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 6 — An Accountant’s Review Report on Interim Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America
Circumstances include the following:
• Review of a complete set of financial statements for the period ended September
30, 20X2, and for the three and nine months then ended.
• The interim financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America.
• The accountant appropriately performs the engagement in accordance with
SSARSs (that is, AU-C section 930B, Interim Financial Information, is not
applicable).
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying interim financial statements of XYZ Company,
which comprise the balance sheet as of September 30, 20X2, and the related statements
of income, changes in stockholders’ equity, and cash flows for the three and nine months
then ended, and the related notes to the interim financial statements. A review includes
primarily applying analytical procedures to management’s (owners’) financial data and
making inquiries of company management (owners). A review is substantially less in
scope than an audit, the objective of which is the expression of an opinion regarding the
interim financial statements as a whole. Accordingly, I (we) do not express such an
opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of interim financial
statements that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
©2020, Association. Unauthorized copying prohibited.
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the interim
financial statements for them to be in accordance with accounting standards generally
accepted in the United States of America. I (We) believe that the results of my (our)
procedures provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying interim financial statements in order for them to be
in accordance with accounting principles generally accepted in the United States of
America.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 7 — An Accountant’s Review Report on Comparative Financial Statements
Disclosing a Departure From Accounting Principles Generally Accepted in the United
States of America
Circumstances include the following:
• Review of a complete set of comparative financial statements.
• The financial statements contain a departure from accounting principles generally
accepted in the United States of America.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheets as of December 31, 20X2 and 20X1, and the related
statements of income, changes in stockholders’ equity, and cash flows for the years then
ended, and the related notes to the financial statements. A review includes primarily
applying analytical procedures to management’s (owners’) financial data and making
inquiries of company management (owners). A review is substantially less in scope than
an audit, the objective of which is the expression of an opinion regarding the financial
statements as a whole. Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
©2020, Association. Unauthorized copying prohibited.
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
Accountant’s Conclusion
Based on my (our) reviews, except for the issue noted in the Known Departure From
Accounting Principles Generally Accepted in the United States of America paragraph, I
am (we are) not aware of any material modifications that should be made to the
accompanying financial statements in order for them to be in accordance with accounting
principles generally accepted in the United States of America.
Known Departure From Accounting Principles Generally Accepted in the United
States of America
As disclosed in Note X to these financial statements, accounting principles generally
accepted in the United States of America require that inventory cost consist of material,
labor, and overhead. Management has informed me (us) that the inventory of finished
goods and work in process is stated in the accompanying financial statements at material
and labor cost only, and that the effects of this departure from accounting principles
generally accepted in the United States of America on financial position, results of
operations, and cash flows have not been determined.
or
As disclosed in Note X to these financial statements, the company has adopted
[description of newly adopted method], whereas it previously used [description of
previous method]. Although the [description of newly adopted method] is in accordance
with accounting principles generally accepted in the United States of America, the
company does not appear to have reasonable justification for making a change as
required by FASB Accounting Standards Codification 250, Accounting Changes and
Error Corrections.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
The following is an illustration of an accountant’s review report in the circumstances if the
practitioner has early implemented SSARS No. 25:
Independent Accountant’s Review Report
[Appropriate Addressee]
©2020, Association. Unauthorized copying prohibited.
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheets as of December 31, 20X2 and 20X1, and the related
statements of income, changes in stockholders’ equity, and cash flows for the years then
ended, and the related notes to the financial statements. A review includes primarily
applying analytical procedures to management’s (owners’) financial data and making
inquiries of company management (owners). A review is substantially less in scope than
an audit, the objective of which is the expression of an opinion regarding the financial
statements as a whole. Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Basis for Qualified Conclusion
As disclosed in Note X to these financial statements, accounting principles generally
accepted in the United States of America require that inventory cost consist of material,
labor, and overhead. Management has informed me (us) that the inventory of finished
goods and work in process is stated in the accompanying financial statements at material
and labor cost only, and that the effects of this departure from accounting principles
generally accepted in the United States of America on financial position, results of
operations, and cash flows have not been determined.
or
As disclosed in Note X to these financial statements, the company has adopted
[description of newly adopted method], whereas it previously used [description of
previous method]. Although the [description of newly adopted method] is in accordance
with accounting principles generally accepted in the United States of America, the
company does not appear to have reasonable justification for making a change as
required by FASB Accounting Standards Codification 250, Accounting Changes and
Error Corrections.
©2020, Association. Unauthorized copying prohibited.
Qualified Conclusion
Based on my (our) reviews, except for the effect of the matter described in the Basis for
Qualified Conclusion paragraph, I am (we are) not aware of any material modifications
that should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 8 — An Accountant’s Review Report on Comparative Financial Statements
Disclosing a Departure From the Tax Basis of Accounting that Affects Only the Current
Year
Circumstances include the following:
• Review of a complete set of comparative financial statements.
• The financial statements are of a partnership and prepared in accordance with the
basis of accounting the partnership uses for income tax purposes (that is, a special
purpose framework).
• Management has a choice of financial reporting frameworks.
• The current year financial statements contain a known departure from the tax
basis of accounting. The prior year financial statements do not contain a known
departure from the tax basis of accounting.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Partnership, which
comprise the statement of assets, liabilities, and partners’ capital — tax basis as of
December 31, 20X2 and 20X1, and the related statements of revenue and expenses — tax
basis, and partners’ capital — tax basis for the years then ended, and the related notes to
the financial statements. A review includes primarily applying analytical procedures to
management’s (partners’) financial data and making inquiries of partnership management
(owners). A review is substantially less in scope than an audit, the objective of which is
the expression of an opinion regarding the financial statement as a whole. Accordingly, I
(we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Partners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with the basis of accounting the partnership uses
for income tax purposes; this includes determining that the basis of accounting the
partnership uses for income tax purposes is an acceptable basis for the preparation of
financial statements in the circumstances. Management (Partners) is (are) also
responsible for the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
©2020, Association. Unauthorized copying prohibited.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services (SSARSs) promulgated by
the Accounting and Review Services Committee of the AICPA. Those standards require
me (us) to perform procedures to obtain limited assurance as a basis for reporting whether
I am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with the basis of accounting the partnership uses
for income tax purposes. I (We) believe that the results of my (our) procedures provide a
reasonable basis for my (our) conclusion.
Accountant’s Conclusion
Based on my (our) reviews, except for the effects on the 20X1 financial statements for
the issue noted in the Known Departure From the Tax Basis of Accounting paragraph, I
am (we are) not aware of any material modifications that should be made to the
accompanying financial statements in order for them to be in accordance with the basis of
accounting the partnership uses for income tax purposes.
Known Departure From the Tax Basis of Accounting Affecting the 20X1 Financial
Statements
The income tax basis of accounting requires that the Partnership record a federal income
tax provision. Management (Partners) has informed me (us) that the Partnership did not
record such a provision in 20X1. The effect of this departure on the 20X1 financial
statements has not been determined. The Partnership recorded the provision in 20X2.
Basis of Accounting
I (We) draw attention to Note X of the financial statements, which describes the basis of
accounting. The financial statements are prepared in accordance with the basis of
accounting the partnership uses for income tax purposes, which is a basis of accounting
other than accounting principles generally accepted in the United States of America. My
(Our) conclusion is not modified with respect to this matter.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
The following is an illustration of an accountant’s review report in the circumstances if the
practitioner has early implemented SSARS No. 25:
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Partnership, which
comprise the statement of assets, liabilities, and partners’ capital — tax basis as of
December 31, 20X2 and 20X1, and the related statements of revenue and expenses — tax
basis, and partners’ capital — tax basis for the years then ended, and the related notes to
the financial statements. A review includes primarily applying analytical procedures to
management’s (partners’) financial data and making inquiries of partnership management
(owners). A review is substantially less in scope than an audit, the objective of which is
©2020, Association. Unauthorized copying prohibited.
the expression of an opinion regarding the financial statement as a whole. Accordingly, I
(we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Partners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with the basis of accounting the partnership uses
for income tax purposes; this includes determining that the basis of accounting the
partnership uses for income tax purposes is an acceptable basis for the preparation of
financial statements in the circumstances. Management (Partners) is (are) also
responsible for the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services (SSARSs) promulgated by
the Accounting and Review Services Committee of the AICPA. Those standards require
me (us) to perform procedures to obtain limited assurance as a basis for reporting whether
I am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with the basis of accounting the partnership uses
for income tax purposes. I (We) believe that the results of my (our) procedures provide a
reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Partnership and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Basis for Qualified Conclusion
The income tax basis of accounting requires that the Partnership record a federal income
tax provision. Management (Partners) has informed me (us) that the Partnership did not
record such a provision in 20X1. The effect of this departure on the 20X1 financial
statements has not been determined. The Partnership recorded the provision in 20X2.
Qualified Conclusion
Based on my (our) reviews, except for the effects on the 20X1 financial statements for
the issue noted in the Basis for Qualified Conclusion paragraph, I am (we are) not aware
of any material modifications that should be made to the accompanying financial
statements in order for them to be in accordance with the basis of accounting the
partnership uses for income tax purposes.
Basis of Accounting
I (We) draw attention to Note X of the financial statements, which describes the basis of
accounting. The financial statements are prepared in accordance with the basis of
accounting the partnership uses for income tax purposes, which is a basis of accounting
other than accounting principles generally accepted in the United States of America. My
(Our) conclusion is not modified with respect to this matter.
©2020, Association. Unauthorized copying prohibited.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 9 — An Accountant’s Review Report on Comparative Consolidated Financial
Statements in Which the Accountant Makes Reference to the Work of Other Accountants
Who Reviewed the Financial Statements of a Significant Component in Accordance With
Statements on Standards for Accounting and Review Services
Circumstances include the following:
• Review of a complete set of comparative consolidated financial statements.
• The financial statements of B Company, a wholly-owned subsidiary, whose
financial statements reflect total assets constituting 20% and 22%, respectively, of
consolidated total assets at December 31, 20X2 and 20X1, and total revenues
constituting 18% and 20%, respectively, of consolidated total revenues for the
years then ended, were reviewed by other accountants in accordance with
Statements on Standards for Accounting and Review Services, and the accountant
has decided to make reference to the work of other accountants in the
accountant’s review report.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying consolidated financial statements of XYZ
Company and its subsidiaries, which comprise the consolidated balance sheets as of
December 31, 20X2 and 20X1, and the related consolidated statements of income,
changes in stockholders’ equity, and cash flows for the years then ended, and the related
notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these consolidated financial statements in accordance with accounting principles
generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair
presentation of consolidated financial statements that are free from material misstatement
whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services (SSARSs) promulgated by
the Accounting and Review Services Committee of the AICPA. We have not reviewed
the financial statements of B Company, a wholly-owned subsidiary, whose financial
statements reflect total assets constituting 20% and 22%, respectively, of consolidated
total assets at December 31, 20X2 and 20X1, and total revenues constituting 18% and
©2020, Association. Unauthorized copying prohibited.
20%, respectively, of consolidated total revenues for the years then ended. Those
statements were reviewed by other accountants, whose report has been furnished to me
(us), and my (our) conclusion, insofar as it relates to the amounts included for B
Company, is based solely on the report of the other accountants.
SSARSs require me (us) to perform procedures to obtain limited assurance as a basis for
reporting whether I am (we are) aware of any material modifications that should be made
to the consolidated financial statements for them to be in accordance with accounting
principles generally accepted in the United States of America. I (We) believe that the
results of my (our) procedures provide a reasonable basis for our conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews, and the report of other accountants, I am (we are) not aware
of any material modifications that should be made to the accompanying consolidated
financial statements in order for them to be in accordance with accounting principles
generally accepted in the United States of America.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 10 — An Accountant’s Review Report on Comparative Financial Statements,
all Required Supplementary Information Accompanies the Financial Statements, and the
Accountant Reviewed the Required Supplementary Information
Circumstances include the following:
• Review of a complete set of comparative financial statements of a homeowners’
association.
• The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
• The estimates of current or future costs of major repairs and replacements of
common property that will be required in the future as required by FASB ASC
972-235-50-3 is included, the accountant has reviewed the information, and no
material departures from the prescribed guidelines have been identified.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Homeowners’
Association, which comprise the balance sheets as of December 31, 20X2 and 20X1, and
the related statements of revenues, expenses, and changes in fund balances and cash
flows for the years then ended, and the related notes to the financial statements. A review
includes primarily applying analytical procedures to management’s (owners’) financial
data and making inquiries of association management (owners). A review is substantially
less in scope than an audit, the objective of which is the expression of an opinion
©2020, Association. Unauthorized copying prohibited.
regarding the financial statements as a whole. Accordingly, I (we) do not express such an
opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that
estimates of current or future costs of major repairs and replacements of common
property that will be required in the future on page XX be presented to supplement the
basic financial statements. Such information, although not a required part of the basic
financial statements, is required by the Financial Accounting Standards Board who
considers it to be an essential part of financial reporting and for placing the basic
financial statements in an appropriate operational, economic, or historical context. The
information is the responsibility of management. I (We) have reviewed the information
and, based on my (our) review, I am (we are) not aware of any material modifications
that should be made to the information in order for it to be in accordance with accounting
principles generally accepted in the United States of America. I (We) have not audited
the information and, accordingly, do not express an opinion on such information.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
©2020, Association. Unauthorized copying prohibited.
Illustration 11 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America and the Review Is Performed in Accordance With Both Statements on
Standards for Accounting and Review Services and International Standard on Review
Engagements 2400 (Revised) Issued by the International Auditing and Assurance
Standards Board
Circumstances include the following:
• Review of a complete set of general purpose consolidated comparative financial
statements.
• Financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
• The accountant performs the engagement in accordance with both Statements on
Standards for Accounting and Review Services and International Standard on
Review Engagements 2400 (Revised) issued by the International Auditing and
Assurance Standards Board.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheets as of December 31, 20X2 and 20X1, and the related
statements of income, changes in stockholders’ equity, and cash flows for the years then
ended, and the related notes to the financial statements. A review includes primarily
applying analytical procedures to management (owners') financial data and making
inquiries of company management (owners). A review is substantially less in scope than
an audit, the objective of which is the expression of an opinion regarding the financial
statements as a whole. Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the
United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of the financial
statements that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA and in accordance with
International Standard on Review Engagements 2400 (Revised) issued by the
International Auditing and Assurance Standards Board. Those standards require me (us)
to perform procedures to obtain limited assurance as a basis for reporting whether I am
(we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
©2020, Association. Unauthorized copying prohibited.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 12 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With International Financial Reporting Standards as Issued by
the International Accounting Standards Board and the Review is Performed in Accordance
With Both Statements on Standards for Accounting and Review Services and International
Standard on Review Engagements 2400 (Revised) Issued by the International Auditing and
Assurance Standards Board
Circumstances include the following:
• Review of a complete set of comparative financial statements.
• The financial statements are prepared in accordance with International Financial
Reporting Standards as issued by the International Accounting Standards Board.
• The accountant performs the engagement in accordance with both Statements on
Standards for Accounting and Review Services and International Standard on
Review Engagements 2400 (Revised) issued by the International Auditing and
Assurance Standards Board.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the statements of financial position as of December 31, 20X2 and 20X1, and the
related statements of comprehensive income, changes in equity, and cash flows for the
years then ended, and the related notes to the financial statements. A review includes
primarily applying analytical procedures to management’s (owners’) financial data and
making inquiries of company management (owners). A review is substantially less in
scope than an audit, the objective of which is the expression of an opinion regarding the
financial statements as a whole. Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair
©2020, Association. Unauthorized copying prohibited.
presentation of financial statements that are free from material misstatement whether due
to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA and in accordance with
International Standard on Review Engagements 2400 (Revised) issued by the
International Auditing and Assurance Standards Board. Those standards require me (us)
to perform procedures to obtain limited assurance as a basis for reporting whether I am
(we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board. I (We) believe that the results
of my (our) procedures provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 13 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With a Financial Reporting Framework Generally Accepted in
Another Country
Circumstances include the following:
• Review of a complete set of comparative financial statements.
• The financial statements are prepared in accordance with a financial reporting
framework generally accepted in another country.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheets as of December 31, 20X2 and 20X1, and the related
statements of income, changes in stockholders’ equity, and cash flows for the years then
ended, and the related notes to the financial statements. A review includes primarily
applying analytical procedures to management’s (owners’) financial data and making
inquiries of company management (owners). A review is substantially less in scope than
an audit, the objective of which is the expression of an opinion regarding the financial
statements as a whole. Accordingly, I (we) do not express such an opinion.
©2020, Association. Unauthorized copying prohibited.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with [the financial reporting framework
generally accepted in another country, including identification of the nationality of the
framework] and for determining that [the financial reporting framework generally
accepted in another country, including identification of the nationality of the framework]
is an acceptable financial reporting framework in the circumstances. Management
(Owners) is (are) also responsible for the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with [the financial reporting framework
generally accepted in another country, including identification of the nationality of the
framework]. I (We) believe that the results of my (our) procedures provide a reasonable
basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with [the financial reporting framework generally accepted in another
country, including identification of the nationality of the framework].
Restriction on Use
Our report is intended solely for the information and use of [specified parties] and is not
intended to be and should not be used by anyone other than these specified parties.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 14 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America When the Financial Statements of the Prior Year Were Audited
Circumstances include the following:
• Review of a complete set financial statements for the current year.
• Audit of the complete set of financial statements of the prior year.
©2020, Association. Unauthorized copying prohibited.
• Both sets of financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheet as of December 31, 20X2, and the related statements of
income, changes in stockholders’ equity, and cash flows for the year then ended, and the
related notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
Report on 20X1 Financial Statements
The 20X1 financial statements were audited by me (us) and I (we) expressed an
unmodified opinion on them in my (our) report dated March 1, 20X2. I (We) have not
performed any auditing procedures since that date.
©2020, Association. Unauthorized copying prohibited.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 15 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America When the Accountant’s Report on the Prior Period Includes a Changed
Reference to a Departure From Accounting Principles Generally Accepted in the United
States of America
Circumstances include the following:
• Review of a complete set of comparative financial statements.
• The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
• The report on the prior period financial statements referenced a departure from
accounting principles generally accepted in the United States of America. The
entity restated the prior period financial statements to correct the misstatement.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheets as of December 31, 20X2 and 20X1, and the related
statements of income, changes in stockholders’ equity, and cash flows for the years then
ended, and the related notes to the financial statements. A review includes primarily
applying analytical procedures to management’s (owners’) financial data and making
inquiries of company management (owners). A review is substantially less in scope than
an audit, the objective of which is the expression of an opinion regarding the financial
statements as a whole. Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
©2020, Association. Unauthorized copying prohibited.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
Report on 20X1 Financial Statements
In my (our) report dated March 1, 20X2, with respect to the 20X1 financial statements,
we referred to a departure from accounting principles generally accepted in the United
States of America because the company carried its land at appraised values. As described
in Note X, the Company has changed its method of accounting for land and restated its
20X1 financial statements in accordance with accounting principles generally accepted in
the United States of America. Accordingly, my (our) present statement on the 20X1
financial statements, as presented herein, that I am (we are) not aware of any material
modifications that should be made to the accompanying financial statements is different
from that expressed in our previous report.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 16 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America When the Prior Period Financial Statements Were Reviewed by a
Predecessor Accountant and the Predecessor’s Report Is Not Presented
Circumstances include the following:
• Review of a complete set of financial statements for the current year.
• Comparative prior year financial statements are presented and such financial
statements were reviewed by a predecessor accountant and the predecessor’s
report is not presented.
• Both sets of financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheet as of December 31, 20X2, and the related statements of
income, changes in stockholders’ equity, and cash flows for the years then ended, and the
related notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
©2020, Association. Unauthorized copying prohibited.
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
Report on 20X1 Financial Statements
The financial statements of XYZ Company as of December 31, 20X1, were reviewed by
other accountants whose report dated February 1, 20X2, stated that based on their
procedures, they are not aware of any material modifications that should be made to the
financial statements in order for them to be in accordance with accounting principles
generally accepted in the United States of America.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 17 — An Accountant’s Review Report on Comparative Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America When the Prior Period Financial Statements Were Reviewed by a
Predecessor Accountant, the Predecessor’s Report Is Not Presented, and the Successor
Accountant Is Engaged to Review the Restatement Adjustments
Circumstances include the following:
• Review of a complete set of financial statements for the current year.
©2020, Association. Unauthorized copying prohibited.
• Comparative prior year financial statements are presented and such financial
statements were reviewed by a predecessor accountant and the predecessor’s
report is not presented.
• The successor accountant is engaged to review the restatement adjustments on the
prior year financial statements
• Both sets of financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheet as of December 31, 20X2, and the related statements of
income, changes in stockholders’ equity, and cash flows for the years then ended, and the
related notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
Report on 20X1 Financial Statements
©2020, Association. Unauthorized copying prohibited.
The financial statements of XYZ Company as of December 31, 20X1, prior to
restatement, were reviewed by other accountants whose report dated February 1, 20X2,
stated that based on their procedures, they are not aware of any material modifications
that should be made to the financial statements in order for them to be in accordance with
accounting principles generally accepted in the United States of America.
Report on Restatement Adjustments to 20X1 Financial Statements
As part of our review of the 20X2 financial statements, we also reviewed the adjustments
described in Note X that were applied to restate the 20X1 financial statements. Based on
my (our) review, I am (we are) not aware of any material modifications that should be
made to the adjustments that were applied to restate the 20X1 financial statements in
order for the statements to be in accordance with accounting principles generally
accepted in the United States of America.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 18 — An Accountant’s Review Report on Comparative Consolidated Financial
Statements Prepared in Accordance With Accounting Principles Generally Accepted in the
United States of America in Which the Accountant Makes Reference to the Review of the
Financial Statements of a Significant Component Prepared Using the Same Financial
Reporting Framework as That Used for the Financial Statements of the Reporting Entity
and Performed by the Other Accountant in Accordance With Statements on Standards for
Accounting and Review Services
Circumstances include the following:
• Accountant performing the review of the reporting entity is making reference to
the review of the financial statements of a component by other accountants.
• Both the financial statements of the reporting entity and the component are
prepared in accordance with accounting principles generally accepted in the
United States of America.
• Both reviews were performed in accordance with Statements on Standards for
Accounting and Review Services.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying consolidated financial statements of XYZ
Company and its subsidiaries, which comprise the consolidated balance sheets as of
December 31, 20X2 and 20X1, and the related consolidated statements of income,
changes in stockholders’ equity, and cash flows for the years then ended, and the related
notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the consolidated financial statements
as a whole. Accordingly, I (we) do not express such an opinion.
©2020, Association. Unauthorized copying prohibited.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these consolidated financial statements in accordance with accounting principles
generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair
presentation of consolidated financial statements that are free from material misstatement
whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagements in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the consolidated
financial statements for them to be in accordance with accounting principles generally
accepted in the United States of America. I (We) believe that the results of my (our)
procedures provide a reasonable basis for my (our) conclusion.
We did not review the financial statements of ABC Company, a wholly-owned
subsidiary, which statements reflect total assets constituting 20% and 22%, respectively,
of consolidated total assets at December 31, 20X2 and 20X1, and total revenues
constituting 18% and 20%, respectively, of consolidated total revenues for the years then
ended. Those statements were reviewed by other accountants, whose report has been
furnished to us, and our conclusion, insofar as it relates to the amounts included for ABC
Company, is based solely on the report of the other accountants.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) reviews and the report of the other accountants, I am (we are) not
aware of any material modifications that should be made to the accompanying
consolidated financial statements in order for them to be in accordance with accounting
principles generally accepted in the United States of America.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 19 — An Accountant’s Review Report on Single Year Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America, Supplementary Information Accompanies the Reviewed Financial
Statements, and the Accountant Subjected the Supplementary Information to the Review
Procedures Applied in the Accountant’s Review of the Basic Financial Statements
Circumstances include the following:
• Review of a complete set of single year financial statements.
©2020, Association. Unauthorized copying prohibited.
• The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
• Supplementary information accompanies the reviewed financial statements and
has been subjected to the accountant’s review procedures applied in the
accountant’s review of the basic financial statements.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheet as of December 31, 20X1, and the related statements of
income, changes in stockholders’ equity, and cash flows for the year then ended, and the
related notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
Supplementary Information
The accompanying [describe the supplementary information, for example, “Schedule of
Accounts Receivable as of December 31, 20X1] is presented for purposes of additional
©2020, Association. Unauthorized copying prohibited.
analysis and is not a required part of the basic financial statements. The [describe the
supplementary information] is the responsibility of management and was derived from,
and relates directly to, the underlying accounting and other records used to prepare the
financial statements. The [describe the supplementary information] has been subjected to
the review procedures applied in my (our) review of the basic financial statements. I am
(we are) not aware of any material modifications that should be made to the [describe the
supplementary information]. I (We) have not audited the [describe the supplementary
information] and do not express an opinion on it.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 20 — An Accountant’s Review Report on Single Year Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America, Supplementary Information Accompanies the Reviewed Financial
Statements, and the Accountant Subjected the Supplementary Information to the Review
Procedures Applied in the Accountant’s Review of the Basic Financial Statements. The
Financial Statements Contain a Departure From Accounting Principles Generally
Accepted in the United States of America Which Impacts the Presentation of the
Supplementary Information in Relation to the Financial Statements
Circumstances include the following:
• Review of a complete set of single year financial statements for a not-for-profit
entity.
• The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
• Supplementary information accompanies the reviewed financial statements and
has been subjected to the accountant’s review procedures applied in the
accountant’s review of the basic financial statements.
• The financial statements contain a departure from accounting principles generally
accepted in the United States of America which impacts the presentation of
supplementary information in relation to the financial statements.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Not-for-Profit,
which comprise the statement of financial position as of December 31, 20X1, and the
related statements of activities and cash flows for the year then ended, and the related
notes to the financial statements. A review includes primarily applying analytical
procedures to management’s financial data and making inquiries of management. A
review is substantially less in scope than an audit, the objective of which is the expression
of an opinion regarding the financial statements as a whole. Accordingly, I (we) do not
express such an opinion.
Management’s Responsibility for the Financial Statements
©2020, Association. Unauthorized copying prohibited.
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
Accountant’s Conclusion
Based on my (our) review, except for the issue noted in the Known Departure From
Accounting Principles Generally Accepted in the United States of America paragraph, I
am (we are) not aware of any material modifications that should be made to the
accompanying financial statements in order for them to be in accordance with accounting
principles generally accepted in the United States of America.
Known Departure From Accounting Principles Generally Accepted in the United
States of America
XYZ Not-for-Profit has excluded the value of donated materials and supplies from
revenue in the accompanying statement of activities and from inventory in the
accompanying statement of financial position. The effect of this departure from
accounting principles generally accepted in the United States of America has not been
determined.
Supplementary Information
The accompanying Schedule of Revenues and Other Support as of December 31, 20X1
(the “Schedule”) is presented for purposes of additional analysis and is not a required part
of the basic financial statements. The Schedule is the responsibility of management and
was derived from, and relates directly to, the underlying accounting and other records
used to prepare the financial statements. The Schedule has been subjected to the review
procedures applied in my (our) review of the basic financial statements.
Except for the impact on the supplementary information of the matter noted in the
preceding Known Departure From Accounting Principles Generally Accepted in the
United States of America, I am (we are) not aware of any material modifications that
should be made to the Schedule. I (We) have not audited the Schedule and do not express
an opinion on it.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
©2020, Association. Unauthorized copying prohibited.
The following is an illustration of an accountant’s review report in the circumstances if the
practitioner has early implemented SSARS No. 25:
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Not-for-Profit,
which comprise the statement of financial position as of December 31, 20X1, and the
related statements of activities and cash flows for the year then ended, and the related
notes to the financial statements. A review includes primarily applying analytical
procedures to management’s financial data and making inquiries of management. A
review is substantially less in scope than an audit, the objective of which is the expression
of an opinion regarding the financial statements as a whole. Accordingly, I (we) do not
express such an opinion.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Not-for-Profit and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements related to our
review.
Basis for Qualified Conclusion
XYZ Not-for-Profit has excluded the value of donated materials and supplies from
revenue in the accompanying statement of activities and from inventory in the
accompanying statement of financial position. The effect of this departure from
accounting principles generally accepted in the United States of America has not been
determined.
Qualified Conclusion
Based on my (our) reviews, except for the effect of the matter described in the Basis for
Qualified Conclusion paragraph, I am (we are) not aware of any material modifications
that should be made to the accompanying financial statements in order for them to be in
©2020, Association. Unauthorized copying prohibited.
accordance with accounting principles generally accepted in the United States of
America.
Supplementary Information
The accompanying Schedule of Revenues and Other Support as of December 31, 20X1
(the “Schedule”) is presented for purposes of additional analysis and is not a required part
of the basic financial statements. The Schedule is the responsibility of management and
was derived from, and relates directly to, the underlying accounting and other records
used to prepare the financial statements. The Schedule has been subjected to the review
procedures applied in my (our) review of the basic financial statements. Except for the
impact on the supplementary information of the matter noted in the preceding Basis for
Qualified Conclusion paragraph, I am (we are) not aware of any material modifications
that should be made to the Schedule. I (We) have not audited the Schedule and do not
express an opinion on it.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 21 — An Accountant’s Review Report on Single Year Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America, Supplementary Information Accompanies the Reviewed Financial
Statements, and the Accountant Did Not Subject the Supplementary Information to the
Review Procedures Applied in the Accountant’s Review of the Basic Financial Statements
Circumstances include the following:
• Review of a complete set of single year financial statements.
• The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
• Supplementary information accompanies the reviewed financial statements and
was not subjected to the accountant’s review procedures applied in the
accountant’s review of the basic financial statements.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheet as of December 31, 20X1, and the related statements of
income, changes in stockholders’ equity, and cash flows for the year then ended, and the
related notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
©2020, Association. Unauthorized copying prohibited.
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
Supplementary Information
The accompanying [describe the supplementary information, for example, “Schedule of
Accounts Receivable as of December 31, 20X1] is presented for purposes of additional
analysis and is not a required part of the basic financial statements. The [describe the
supplementary information] is the responsibility of management. I (We) have not audited
or reviewed the [describe the supplementary information] and accordingly do not express
an opinion, a conclusion, nor provide any assurance on it.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 22 — An Accountant’s Review Report on Single Year Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America, Supplementary Information Is Presented on the Face of the Reviewed
Financial Statements, and the Accountant Did Not Subject the Supplementary Information
to the Review Procedures Applied in the Accountant’s Review of the Basic Financial
Statements
Circumstances include the following:
• Review of a complete set of single year financial statements.
• The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America.
©2020, Association. Unauthorized copying prohibited.
• Supplementary information is presented as a separate column on the face of the
reviewed financial statements and was not subjected to the accountant’s review
procedures applied in the accountant’s review of the basic financial statements.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheet as of December 31, 20X1, and the related statements of
income, changes in stockholders’ equity, and cash flows for the year then ended, and the
related notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Accountant’s Conclusion
Based on my (our) review, I am (we are) not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be in
accordance with accounting principles generally accepted in the United States of
America.
Supplementary Information
The [describe the supplementary information] presented on the face of the financial
statements as a separate column is presented for purposes of additional analysis and is not
a required part of the basic financial statements. The [describe the supplementary
information] is the responsibility of management. I (We) have not audited or reviewed
©2020, Association. Unauthorized copying prohibited.
the [describe the supplementary information] and accordingly do not express an opinion,
a conclusion, nor provide any assurance on it.
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
Illustration 23 — An Accountant’s Review Report on Single Year Financial Statements
Prepared in Accordance With Accounting Principles Generally Accepted in the United
States of America Containing an Adverse Conclusion Due to a Misstatement of the
Financial Statements That Is Both Material and Pervasive to the Financial Statements
Circumstances include the following:
• Review of a complete set of comparative financial statements.
• The financial statements contain a departure from accounting principles
generally accepted in the United States of America that is both material and
pervasive to the financial statements due to nonconsolidation of a subsidiary.
Independent Accountant’s Review Report
[Appropriate Addressee]
I (We) have reviewed the accompanying financial statements of XYZ Company, which
comprise the balance sheet as of December 31, 20X1, and the related statements of
income, changes in stockholders’ equity, and cash flows for the year then ended, and the
related notes to the financial statements. A review includes primarily applying analytical
procedures to management’s (owners’) financial data and making inquiries of company
management (owners). A review is substantially less in scope than an audit, the objective
of which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, I (we) do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management (Owners) is (are) responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement whether due to fraud or error.
Accountant’s Responsibility
My (Our) responsibility is to conduct the review engagement in accordance with
Statements on Standards for Accounting and Review Services promulgated by the
Accounting and Review Services Committee of the AICPA. Those standards require me
(us) to perform procedures to obtain limited assurance as a basis for reporting whether I
am (we are) aware of any material modifications that should be made to the financial
statements for them to be in accordance with accounting principles generally accepted in
the United States of America. I (We) believe that the results of my (our) procedures
provide a reasonable basis for my (our) conclusion.
©2020, Association. Unauthorized copying prohibited.
I am (We are) required to be independent of XYZ Company and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements related to our
reviews.
Basis for Adverse Conclusion
As disclosed in Note X to these financial statements, the Company has not consolidated
the financial statements of subsidiary ABC Company it acquired during 20X1 because it
has not yet been able to ascertain the fair values of certain of the subsidiary’s material
assets and liabilities at the acquisition date. This investment is therefore accounted for on
a cost basis by the Company. Under accounting principles generally accepted in the
United States of America, the subsidiary should have been consolidated because it is
controlled by the Company. Had XYZ Company been consolidated, many elements in the
accompanying consolidated financial statements would have been materially affected.
The effects on the consolidated financial statements of the failure to consolidate have not
been determined.
Adverse Conclusion
Based on my (our) review, due to the significance of the matter described in the Basis for
Adverse Conclusion paragraph, the financial statements are not in accordance with
accounting principles generally accepted in the United States of America. [Had we been
engaged to perform an audit, other matters might have come to our attention.]
[Signature of accounting firm or accountant, as appropriate]
[Accountant’s city and state]
[Date of the accountant’s review report]
