Reviewing Financial Statements
The review of financial statements is occasionally required by the audited entity—companies, corporations, partnerships, or independent businesses—to submit unaudited or reviewed financial statements to various stakeholders. This is often necessary when the audited entity applies for credit from a banking institution or supplier. To assess the credit application, the lender may require unaudited or reviewed financial statements for the year of the application or part of it.
A review of financial statements is conducted when a full audit, as required by professional auditing standards, has not been performed. Therefore, these statements do not include an auditor’s opinion. Reviewed financial statements, however, are not considered audited but undergo specific review procedures by certified accountants. These procedures include reviewing the company’s minutes of meetings during the period, examining significant contracts and agreements impacting the financial statements, and assessing substantial investments in tangible and intangible assets. These reviews are performed in accordance with the guidelines of the Israeli Institute of Certified Public Accountants, and the statements are accompanied by a signed review report from a certified public accountant.
Our audit department at Michael Weizman & Co. – Certified Public Accountants is responsible for the review of both unaudited and reviewed financial statements, according to the client’s needs. As part of our ongoing services, once the unaudited or reviewed statements are provided to the client, they are forwarded to our tax department to examine their tax implications and assess whether tax prepayments for the year should be adjusted.
Additionally, our firm prepares other unaudited reports annually, including annual reports for independent businesses and salaried managers of companies, which are legally required to be submitted to the tax authorities. We also prepare declarations of capital for business owners and salaried managers as required by the Israeli Tax Authority. These reports and capital declarations are not subject to auditing and are prepared by certified tax consultants—senior accountants from our accounting department.
An accountant from our firm will be happy to assist you with this service. Contact us today for a no-obligation consultation.
