ASSURANCE SERVICES · SSARS / AR-C SECTION 90 · U.S. GAAP
Financial StatementReview & LimitedAssurance Services
Independent CPA review engagements designed to provide limited assurance on financial statements and strengthen confidence for lenders, investors, owners, boards, and other stakeholders.
Licensed CPA-Led Review
SSARS / AR-C Section 90
U.S. GAAP
Independent & Objective
REVIEW ENGAGEMENT ARCHITECTURE
SSARS AR-C 90
Assurance Scope Spectrum
Limited Assurance
Compilation
No Assurance
Review
Limited Assurance
Audit
Reasonable Assurance
Engagement Pathway
01
Acceptance & Independence
Terms, independence, framework & intended use
Confirmed
02
Understanding Entity
Operations, industry, accounting & statement trends
Analyzed
03
Inquiry & Analytics
Targeted procedures across material accounts
Performed
04
Statement Evaluation
Classifications & U.S. GAAP disclosures
Evaluated
05
Review Report
Independent accountant’s review report issued
Delivered
Independent CPA Perspective · Limited Assurance · Stakeholder Confidence
SERVICE BRIEF
Financial Statement Review
for Private & Non-Public Companies
At Jay & Co. CPA PLLC, we provide independent financial statement review engagements for privately held and non-public companies that need meaningful CPA assurance without the extensive procedures of an audit.
A review engagement is performed in accordance with applicable Statements on Standards for Accounting and Review Services (SSARS). The objective is to obtain limited assurance, primarily through inquiry and analytical procedures, as a basis for reporting whether the accountant is aware of any material modifications that should be made for the financial statements to be in accordance with the applicable financial reporting framework.
For engagements using U.S. GAAP, we evaluate the financial statements and related disclosures for consistency with accounting principles generally accepted in the United States of America. The financial statements are the responsibility of management; our responsibility is to report on them based on our review. Review engagements require CPA independence and professional judgment throughout the engagement.
THE REVIEW OBJECTIVE
Provide independent limited assurance that gives users greater confidence in the financial statements while maintaining a focused, efficient engagement approach.
Review Engagement Foundations
Rigorous execution under AICPA Statements on Standards for Accounting and Review Services (SSARS AR-C Section 90) tailored for privately held businesses.
Independent CPA Attest
Objective evaluation free from operational conflicts or internal management bias.
Limited Assurance Standard
Negative assurance based primarily on inquiry and substantive analytical procedures.
Management Responsibility
Clear boundary: management prepares statements while the CPA reports independently.
Focused & Analytical Scope
Targeted examination of financial trends, ratios, estimates, and GAAP note disclosures.
Applicable Standard:
SSARS / AR-C Section 90
REVIEW ENGAGEMENT FRAMEWORK
Review Engagement Framework
A focused, professional CPA assurance process for non-public financial statements.
STAGE 01
Engagement Acceptance & Independence
Confirm engagement terms, independence, reporting framework, and intended use.
Deliverable
Engagement Letter & Independence Confirmation
STAGE 02
Understanding the Entity & Financial Information
Develop an understanding of the business, accounting practices, industry, and financial statement relationships.
Deliverable
Entity Knowledge & Ratio Baseline
STAGE 03
Inquiry & Analytical Procedures
Perform management inquiries and analytical procedures over material financial statement areas.
Deliverable
Analytical Workpapers & Variance Log
STAGE 04
Financial Statement & Disclosure Evaluation
Evaluate whether the statements and disclosures are consistent with the applicable financial reporting framework.
Deliverable
Financial Statement & Disclosure Review
STAGE 05
Accountant’s Review Report
Conclude the engagement and issue the independent accountant’s review report.
Deliverable
Independent Accountant’s Review Report
Sequence:
01 Acceptance
02 Understanding
03 Inquiries & Analytics
04 Statement Evaluation
05 Review Report
Independent CPA Oversight • Quality-Focused Documentation • Limited Assurance
ENGAGEMENT SCOPE
Review Services We Provide
Our review practice delivers independent limited assurance across private corporate structures, multi-entity organizations, interim periods, and specialized reporting frameworks.
Year-End Reporting
Annual Financial Statement Reviews
01
Year-end review engagements for privately held businesses and non-public entities requiring reviewed financial statements.
Procedure Scope:Comprehensive annual balance sheet, income statement, cash flows, and note disclosures.
Periodic Governance
Interim Financial Statement Reviews
02
Quarterly, semiannual, or other interim-period reviews for lenders, investors, boards, and management reporting needs.
Procedure Scope:Interim period variance analysis, key ratio tracking, and ongoing compliance reviews.
Trend Analysis
Comparative Financial Statement Reviews
03
Review of comparative statements covering multiple periods to support trend-focused external reporting.
Procedure Scope:Multi-year trend evaluation, consistency across accounting periods, and margin comparability.
Multi-Entity Structures
Consolidated or Combined Financial Statement Reviews
04
Review engagements for groups with subsidiaries, affiliated entities, or commonly controlled operations, where appropriate.
Procedure Scope:Intercompany elimination checks, consolidation accounting, and combined entity reporting.
Standard Framework
U.S. GAAP Financial Statement Reviews
05
Review engagements where the financial statements are presented in accordance with U.S. GAAP.
Procedure Scope:Complete evaluation of U.S. GAAP presentation conventions, recognition rules, and mandatory notes.
Alternative Bases
Special-Purpose Framework Reviews
06
Review engagements for financial statements prepared under an acceptable special-purpose framework, such as cash basis or tax basis, when appropriate for the intended users.
Procedure Scope:Special-purpose accounting policies, measurement consistency, and specialized framework disclosures.
Individual & Principal
Personal Financial Statement Reviews
07
Independent review engagements for personal financial statements when limited assurance is needed for financing, lending, or other reporting purposes.
Procedure Scope:Estimated current value presentations, personal liabilities, and financing qualification support.
Covenant & Stakeholder
Lender, Investor & Contract-Driven Reviews
08
Reviewed financial statements prepared to satisfy financing arrangements, investor expectations, contractual requirements, or governance needs.
Procedure Scope:Debt covenant monitoring, investor reporting packages, and contractual verification.
REVIEW METHODOLOGY
A Focused, Analytical Review Approach
A review engagement is built around professional inquiry, analytical procedures, financial statement evaluation, and follow-up of significant or unexpected relationships. The work is targeted to obtain limited assurance and support the accountant’s review report.
STEP 01
Operational Context
Understanding the Business
We obtain an understanding of the company’s operations, industry, accounting system, ownership, financing, and key financial reporting practices.
Rigorous SSARS Standard
STEP 02
Substantive Inquiry
Management Inquiry
We make focused inquiries of management and other appropriate personnel regarding accounting policies, significant transactions, estimates, commitments, contingencies, related parties, subsequent events, and other relevant matters.
Rigorous SSARS Standard
STEP 03
Quantitative Analysis
Analytical Procedures
We compare financial information across periods, budgets, expectations, ratios, margins, and operating metrics to identify unusual or significant relationships requiring further investigation.
Rigorous SSARS Standard
STEP 04
Variance Resolution
Investigation of Significant Variances
When relationships, fluctuations, or amounts are inconsistent with expectations or other information, we perform additional inquiry or procedures as necessary to resolve the matter.
Rigorous SSARS Standard
STEP 05
Framework Alignment
Financial Statement Presentation
We assess whether the financial statements are appropriately classified and presented under the applicable financial reporting framework.
Rigorous SSARS Standard
STEP 06
Note Evaluation
Disclosure Review
We evaluate whether material disclosures, accounting policies, commitments, contingencies, and other required information are appropriately presented.
Rigorous SSARS Standard
STEP 07
Formal Confirmation
Management Representations
Management provides written representations confirming its responsibility for the financial statements and other matters relevant to the review engagement.
Rigorous SSARS Standard
STEP 08
Engagement Conclusion
Reporting & Completion
After completing the required procedures and evaluating the results, we issue the accountant’s review report, which may be unmodified or modified depending on the results of the engagement.
Rigorous SSARS Standard
FINANCIAL REPORTING FOCUS
Areas Commonly Addressed in a Review Engagement
The exact scope depends on the entity and its financial statements. Review procedures are designed around material financial statement areas and significant relationships identified during the engagement.
FOCUS DOMAIN 01
Assets, Liquidity & Operations
Core working capital, cash flows, and operational assets evaluated through trend and analytical inquiry.
Cash, liquidity, and bank activity
Accounts receivable, aging, and collectability trends
Revenue recognition and gross-margin relationships
Inventory and cost of goods sold
Prepaid expenses and other assets
Property, equipment, depreciation, and disposals
Targeted Review
Limited Assurance
FOCUS DOMAIN 02
Liabilities, Payroll & Capital
Short and long-term financial obligations, compensation structures, and equity movements.
Accounts payable and accrued liabilities
Payroll and employee-related obligations
Debt, financing arrangements, and covenant-related reporting
Equity, capital contributions, and distributions
Targeted Review
Limited Assurance
FOCUS DOMAIN 03
Estimates, Governance & Disclosures
Significant accounting judgments, commitments, related parties, and full framework disclosure review.
Related-party transactions and balances
Significant accounting estimates and judgments
Commitments and contingencies
Subsequent events and going-concern considerations
Financial statement classification and U.S. GAAP disclosures, where applicable
Targeted Review
Limited Assurance
STAKEHOLDER CONFIDENCE
When Reviewed Financial Statements Are Especially Valuable
A review engagement provides a practical, cost-effective assurance level for private companies satisfying credit, governance, regulatory, and transaction requirements.
USE CASE 01
Bank & Lender Requirements
Provide independent CPA-reviewed financial statements for borrowing, renewals, credit facilities, or covenant reporting.
Business Application
Credit facilities, lines of credit & debt covenants
USE CASE 02
Investor & Ownership Reporting
Improve confidence in financial information provided to shareholders, investors, or ownership groups.
Business Application
Shareholder distributions, equity partners & investor updates
USE CASE 03
Board & Governance Reporting
Support boards and those charged with governance with independently reviewed financial statements.
Business Application
Fiduciary oversight, board presentations & governance committees
USE CASE 04
Growing Private Companies
Add a meaningful level of independent assurance as the business scales and external reporting expectations increase.
Business Application
Mid-market scaling, financial maturation & transition milestones
USE CASE 05
Contractual Requirements
Meet review requirements included in agreements, leases, financing arrangements, or other contracts.
Business Application
Commercial leases, supplier contracts & franchise stipulations
USE CASE 06
Transaction & Due-Diligence Readiness
Improve the credibility and organization of financial reporting before financing, investment, or business transactions.
Business Application
M&A prep, equity recapitalizations & buyer diligence
PROFESSIONAL ASSURANCE
Independent Limited Assurance
Built on Professional Standards
Our review engagements for non-public entities are performed in accordance with Statements on Standards for Accounting and Review Services (SSARS), issued by the Accounting and Review Services Committee of the AICPA. The engagement is designed to provide limited assurance, not an audit opinion, and requires the accountant to be independent of the client.
STANDARD 01
SSARS / AR-C Section 90
Review engagements are performed under AR-C Section 90, Review of Financial Statements, together with the other SSARS requirements applicable to the engagement.
Quality Dimension
AICPA SSARS Standard
STANDARD 02
U.S. GAAP, Where Applicable
When U.S. GAAP is the selected financial reporting framework, the review includes consideration of financial statement presentation and disclosures under U.S. GAAP.
Quality Dimension
Reporting Framework
STANDARD 03
Independence & Objectivity
Independence is required for a review engagement. Engagement acceptance includes appropriate independence and conflict-of-interest considerations. Where we also provide bookkeeping or other nonattest services, the required safeguards are evaluated and documented, and we do not perform a review if independence cannot be maintained.
Quality Dimension
Uncompromised Integrity
STANDARD 04
Professional Judgment
Review procedures are designed and evaluated using CPA professional judgment, with follow-up when significant or unexpected financial relationships are identified.
Quality Dimension
CPA Analysis
STANDARD 05
Quality-Focused Engagement Execution
Engagement documentation, supervision, and reporting are performed within the firm’s system of quality management, designed and maintained in accordance with applicable AICPA quality management standards.
Quality Dimension
Firm Quality System
CRITICAL ASSURANCE DISCLOSURE
WHAT LIMITED ASSURANCE MEANS
A financial statement review is substantially narrower in scope than an audit. It is based primarily on inquiry and analytical procedures and does not contemplate obtaining an understanding of internal control, assessing fraud risk, testing accounting records, or examining source documents — and accordingly it does not provide an audit opinion.
The accountant reports whether, based on the review, the accountant is aware of any material modifications that should be made to the financial statements for them to conform with the applicable financial reporting framework.
Assurance Scope Comparison: Review vs. Audit
Clear distinction of engagement scope, procedures, and reporting outcomes under AICPA standards.
| Engagement Factor | Review Engagement (SSARS AR-C 90) | Audit Engagement (U.S. GAAS) |
|---|---|---|
| Primary Objective | Review Limited assurance that no material modifications are needed | Audit Reasonable assurance that statements are free from material misstatement |
| Primary Procedures | Review Inquiries of management and analytical review procedures | Audit Substantive testing, confirmations, physical observation, analytical & control testing |
| Internal Control Evaluation | Review Not required; does not assess internal controls or fraud risk | Audit Required understanding of internal controls to design audit procedures |
| Source Document Testing | Review No testing of accounting records or examination of source documents | Audit Extensive sampling and verification of underlying source transactions |
| Level of Assurance | Review Limited (negative) assurance | Audit Reasonable (high, but not absolute) assurance |
| Accountant’s Report Type | Review Independent Accountant’s Review Report | Audit Independent Auditor’s Report (Audit Opinion) |
COMPLEMENTARY ASSURANCE & ADVISORY
Explore Related CPA Services
ENGAGEMENT ACCEPTANCE & INQUIRY
Reliable Financial Reporting.
Independent CPA Perspective.
Whether reviewed financial statements are needed for a lender, investor, board, contractual requirement, or a growing company’s financial reporting process, Jay & Co. CPA PLLC delivers a focused and professionally executed review engagement designed to strengthen confidence in your financial information.
Independent CPA Review
•
Non-Public Companies
•
SSARS
•
U.S. GAAP
•
Limited Assurance
Direct Phone
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Office
Kalispell, Montana • Remote U.S.
RECOMMENDED WEBSITE DISCLOSURE
Attest and assurance services are provided only where Jay & Co. CPA PLLC and its engagement partner hold the individual licenses, firm permits, and registrations required under applicable state laws, and only where applicable professional standards, independence requirements, and peer review requirements are met. All review engagements are subject to client acceptance procedures, independence and conflict-of-interest checks, availability of appropriate financial information, and execution of a signed engagement letter. Management remains responsible for the preparation and fair presentation of the financial statements. A review is substantially less in scope than an audit, provides limited assurance only, and does not result in the expression of an audit opinion. Nothing on this page is an offer to perform services in a jurisdiction in which the firm is not authorized to practice.