A financial review provides:

• A. Some assurances that the financial statements make sense, without an opinion letter
• B. An audit opinion on GAAP conformity
• C. A full external verification of records
• D. A guarantee that there are no errors

Answer: (A)

A financial review provides limited assurance that the financial statements appear reasonable. The reviewer uses inquiries and analytical procedures to form the conclusion that, based on the evidence obtained, nothing has come to their attention to cause concern about the statements’ presentation. However, this does not include the evidence gathering and tests that would support an opinion on conformity with GAAP, so no audit opinion is issued. It also isn’t a full external verification of records, and it does not guarantee that there are no errors. So, the description that a financial review gives some assurance that the statements make sense, without an opinion letter, best captures what this service provides.