Review of financial statements

The purpose of a review of financial statements is to enable the auditor to state whether anything has come to his attention that causes him to believe that the financial statements are not prepared, in all material respects, in accordance with the requirements of the financial reporting framework. Financial statements are reviewed using procedures that do not provide all the evidence that would be required in an audit.
The review of financial statements is performed on the basis of so-called negative assurance. The auditor provides an opinion in the conclusion as to whether any circumstances have been observed during the review that would give grounds to believe that the annual financial statements do not correctly reflect the financial position, performance and cash flows of the company.