What is an Independent Review?
An independent review is a limited assurance engagement performed by a registered independent reviewer, designed to assess whether a company’s financial statements are fairly presented in accordance with applicable financial reporting standards.
It is less rigorous and less costly than an audit but provides more credibility than a compilation. The reviewer performs limited procedures primarily analytical review and inquiries to conclude whether anything has come to their attention that causes concern about the financial statements.
Independent reviews are particularly suitable for private companies that are not legally required to undergo a full audit but still want or need some level of external financial validation.
- What Does the Independent Review Process Entail?
Issue Identification and Context Setting We start by understanding your business, industry and internal controls to tailor our approach and identify risk areas.
We perform ratio analysis, trend comparisons and inquiries with management to understand the figures presented. The goal is to assess whether they appear reasonable and consistent with business performance.
We examine selected supporting documentation for key financial areas such as:
• Revenue recognition
• Expenses
• Receivables and payables
• Bank balances
• Fixed assets
• Loan agreements
We also assess compliance with applicable reporting standards (e.g. IFRS for SMEs).
If not already prepared, we compile the financial statements. These are reviewed for accuracy, consistency and proper disclosure.
We issue a formal Independent Review Report, providing limited assurance that the financial statements are free from material misstatements.
- Key Use Cases for Accounting Memos
Who Needs an Independent Review?
Independent reviews are required or suitable for
• Private companies that meet the thresholds defined in the Companies Act and do not require a full audit
• Owner-managed businesses seeking to enhance the credibility of their financials
• Businesses applying for finance, tenders, or third-party investments
• Close Corporations (CCs) still operating under transitional arrangements
The need for a review is often based on the Public Interest Score (PIS), number of employees, turnover, and external shareholding.
