AR 200.39
Review Report on Comparative Financial Statements When the Financial
Statements of the Current Period Have Been Reviewed and Those
of The Prior Period Have Been Compiled
Independent Accountant’s Review Report1
[Appropriate Salutation]
I (We) have reviewed the accompanying balance sheet of XYZ Company as of
December 31, 20X2, and the related statements of income, retained earnings,
and cash flows for the year then ended. A review includes primarily applying
analytical procedures to management's (owners') financial data and making
1 Alternatively, an accountant may use a title that does not describe the level of service such as
“Accountant's Report” or “Report of Certified Public Accountants” because the report refers to different
levels of service.AR §200.39 Reporting on Comparative Financial Statements 2735
inquiries of company management (owners). A review is substantially less in
scope than an audit, the objective of which is the expression of an opinion
regarding the financial statements as a whole. Accordingly, I (we) do not express
such an opinion.
Management (owners) is (are) responsible for the preparation and fair presentation
of the financial statements in accordance with accounting principles
generally accepted in the United States of America and for designing, implementing,
and maintaining internal control relevant to the preparation and fair
presentation of the financial statements.
My (our) responsibility is to conduct the reviews in accordance with Statements
on Standards for Accounting and Review Services issued by the American Institute
of Certified Public Accountants. Those standards requireme(us) to perform
procedures to obtain limited assurance that there are no material modifications
that should be made to the financial statements. I (We) believe that the results
of my (our) procedures provide a reasonable basis for our report.
Based onmy(our) reviews, Iam(we are) not aware of any material modifications
that should be made to the 20X2 financial statements in order for them to be in
conformity with accounting principles generally accepted in the United States
of America.
The accompanying 20X1 financial statements of XYZ Company were compiled
by me (us). The objective of a compilation is to assist management in presenting
financial information in the form of financial statements without undertaking
to obtain or provide any assurance that there are no material modifications that
should be made to the financial statements. Accordingly, I (we) do not express
an opinion or provide any assurance about whether the financial statements
are in accordance with accounting principles generally accepted in the United
States of America.
[Signature of accounting firm or accountant, as appropriate]
[Date]
The last paragraph is what you're referencing I believe. that's how the update should be written
.