A review is a less intensive process than an audit, but it does provide you with a similar set of financial statements. It provides an added level of assurance to your funders and board members that financials are accurately stated without going through the more comprehensive audit process. Major differences between an audit and a review are:
- All work is conducted off-site – there is no fieldwork scheduled in your office.
- The financial statements are issued without an internal control management letter – since we don’t visit you and test your internal controls, we don’t issue an opinion regarding their effectiveness.
Crosby & Kaneda provides review services to nonprofit organizations with operating budgets ranging from $100,000 to $500,000 (and beyond).
By conducting regular reviews (annually or otherwise), you are providing an increased level of financial accountability for your Board of Directors and future or current funders. In a highly competitive nonprofit environment, this can provide your organization with the edge needed to succeed and expand.
Reviews are a good option for smaller organizations that don’t have the resources to devote to a full audit. Although many funders require an audited financial statement in order to be considered as a grant recipient, some funders will accept a review (and in some cases a 990 tax form prepared and signed by a CPA). If you have any question about the acceptability of a review vs. an audit, you should always confirm that directly with your funder.