Review of financial statements

If your company is not subject to a statutory audit and a voluntary audit does not provide the desired added value, an assessment assignment can be a good alternative.

In an assessment engagement, VHM Audit examines whether the financial statements are a good reflection of the of the financial situation of the organization, but the auditor performs less work than with an audit assignment. The activities in a review largely consist of:

• Performing a risk analysis, while focusing on possible errors in the financial statements;

• Requesting information from people in the organization;

• Performing numerical analysis;

• Testing the financial statements against laws and regulations.

Because the auditor performs less audit work in this review, less assurance can be given about the financial statements. In this case, the conclusion provides a limited degree of assurance. The choice of this type of review depends on the user(s)' need for assurance in relation to the costs.

In the review statement, the auditor states that "there is no evidence that the financial statements do not give a true and fair view of the company's assets and results”. This means that the financial statements appear to be plausible. If we suspect that the financial statements contain a material misstatement, we conduct further investigation.