Are reviewed statements legally valid for lenders?

Yes. Reviewed financial statements are commonly accepted by lenders as evidence of financial condition; acceptance depends on the lender's underwriting criteria rather than a single legal requirement.

Can a CPA review report be electronically signed?

Yes. Electronic signatures are legally enforceable in the U.S. under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; ensure the eSignature process preserves intent, attribution, and retention.

What distinguishes an audit from a review?

An audit provides reasonable assurance based on substantive testing and internal control evaluation; a review provides limited assurance through analytical procedures and inquiries per AICPA standards.

Who is authorized to sign the review report?

A licensed CPA or a firm partner conducting the engagement should sign the report; the signature should identify the firm and include the date and city/state of issuance.

What supporting documents should be included?

Include trial balance, reconciliations, bank statements, aged receivables/payables, and significant contracts; these expedite the CPA's inquiries and reduce follow-up requests.

How long must I retain the files?

Retain reviewed statements and supporting records at least three years for tax audit purposes (IRC §6501(a)), longer if industry rules or potential litigation apply.

Electronic Signature
Templates
Finance
Financial Reviewed Statements

Financial Reviewed Statements

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FINANCIAL REVIEWED STATEMENTS

Entity and Engagement Information

Client Name:

Client Address

Fiscal Year End: Period Covered From: To:

Engagement Reference

Reviewer (Accounting Firm)

Firm Name Firm Address, Contact

Statements Included

Please indicate which financial statements are included in this engagement file:

Balance Sheet Statement of Income (Profit & Loss) Statement of Cash Flows

Statement of Changes in Equity Notes to the Financial Statements Other (specify below)

Scope of Review and Responsibilities

Management's Responsibility: Management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Reviewer’s Responsibility: Our responsibility is to conduct a review of the accompanying financial statements in accordance with standards applicable to review engagements. A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. The procedures performed in a review are substantially less in scope than an audit and therefore do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.

Basis of Limited Assurance: A review provides only limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with the applicable financial reporting framework. Accordingly, we do not express an audit opinion.

Reviewer’s Conclusion

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements for the period specified above in order for them to be in conformity with the applicable financial reporting framework.

Use and Distribution

This review report is intended solely for the information and use of management and those charged with governance and is not intended to be and should not be used by anyone other than these specified parties. The reviewer assumes no responsibility to parties other than management and those charged with governance for the contents of this report.

Management Representations

The undersigned management personnel confirm that the financial statements are complete and fair, that all known or suspected frauds involving management or employees with significant roles in internal control have been disclosed, and that all material subsequent events have been disclosed to the reviewer.

Terms, Limitations and Fees

The terms of the engagement, limitations on scope, and the basis for our fees are as set forth in the engagement letter. The fee for the review engagement is subject to adjustment for additional procedures that may arise from matters identified during the engagement. Any outstanding fees may result in withholding of the final review report until paid in full.

Acknowledgment of Receipt

By signing below, the parties acknowledge receipt of the reviewed financial statements and agree that the representations, responsibilities, and limitations set forth above accurately describe the engagement and the use of the report.

Client (Authorized Representative) - Print Name:

By:

Date:

Reviewer (Accountant) - Print Name:

By:

Date:

What Financial Reviewed Statements Are and how they differ from other reports

Financial Reviewed Statements are financial reports prepared by an entity and subjected to a CPA's review engagement under AICPA standards. A review provides limited assurance that there are no material modifications needed, relying primarily on analytical procedures and inquiry rather than the extensive testing used in an audit. Reviewed statements sit between compiled statements (no assurance) and audited statements (reasonable assurance), and they are commonly requested by lenders, investors, and certain regulatory or contractual counterparties when moderate assurance is sufficient.

Why a review engagement matters for stakeholders

A review offers independent, limited assurance that figures are plausible, improving credibility while keeping costs and disruption lower than an audit.

Who prepares and relies on reviewed financial statements

Typical preparers and recipients of reviewed statements vary by purpose and industry.

Small and medium businesses seeking bank financing or lines of credit; banks often accept reviewed statements as part of underwriting materials.
Private investors, venture creditors, and acquirers who need independent, moderate assurance before advancing capital or negotiating terms.
CPAs and accounting firms performing the review engagement, providing the review report and any associated accountant's comments.

Understanding the audience helps determine the level of detail and supporting documentation required.

Core components included in a professional reviewed financial statement package

A complete reviewed package presents the financial statements plus notes and a CPA review report that explains scope and limited assurance; clear presentation supports user decisions.

Balance Sheet

A statement of financial position showing assets, liabilities, and equity at the reporting date, presented in a standard format for comparability.

Income Statement

A statement of comprehensive income or profit and loss showing revenues, expenses, and net income for the reporting period, aligned with applicable accounting framework.

Statement of Cash Flows

Shows cash inflows and outflows from operating, investing, and financing activities, clarifying liquidity and cash management over the period.

Notes and Disclosures

Footnotes that explain accounting policies, significant estimates, related-party transactions, contingencies, and other items needed for fair presentation.

CPA Review Report

A one- or two-paragraph report from the CPA describing procedures performed, expressing limited assurance that material modifications are not necessary.

Comparative Periods

Prior-period comparative financials and consistent presentation to help users assess trends and changes across reporting periods.

Essential fields to include on every reviewed statement

Entity Name: Full legal name

Reporting Period: Start and end dates

Currency: Reporting currency indicated

Accounting Basis: GAAP or other basis

Preparer Name: Company or preparer

CPA Firm: Reviewing firm name

Step-by-step process to prepare and deliver reviewed financial statements

Follow these sequential steps to prepare documents, engage a CPA, and deliver reviewed statements to recipients.

01

Gather Records: Collect trial balance, supporting schedules, and bank confirmations.
02

Prepare Drafts: Generate financial statements and explanatory notes for CPA review.
03

Engage CPA: Agree scope, materiality, and deliverables with the reviewing firm.
04

Deliver Final: Provide signed review report and statements to lenders or other users.

Typical submission and routing workflow for reviewed statements

A clear routing plan reduces delays; outline who receives drafts, who approves, and how the final package is transmitted.

Internal Review: Management reviews and approves the draft prior to CPA engagement.
CPA Procedures: CPA performs analytical procedures and inquiries per review standards.
Client Approval: Management signs off on final statements and any disclosure changes.
External Delivery: Send to lenders, investors, or filing recipients with cover letter.

Digital delivery and eSignature considerations

Decide whether to deliver signed PDFs, secure links, or notarized originals depending on recipient requirements.

File Formats: PDF, PDF/A recommended
Authentication: Email, SMS, or stronger KBA
Integrations: Salesforce, NetSuite, Google Workspace

How to download, export, and preserve the final reviewed statement files

Choose file formats and export options that preserve content, metadata, and the audit trail required to reproduce the signing process if needed.

PDF/A Export

Export final statements as PDF/A to ensure long-term preservation and consistent rendering across platforms. Include the audit trail as an attached document when possible.

Editable Formats

Provide a copy in Word or Excel only for internal use; retain a locked PDF for external distribution to prevent inadvertent changes.

Signed Copy

Ensure the delivered copy includes an auditor's or CPA's signature and any certificate of completion showing timestamps and signer metadata.

Archive Package

Store the financial statements, CPA report, supporting schedules, and the complete audit trail together to satisfy retention and reproduction requirements.

Practical tips to keep the review efficient and reliable

Small procedural improvements reduce review time and follow-up requests from the CPA.

Organize supporting schedules

Provide reconciliations, bank statements, and aging schedules in a consistent folder structure so the CPA can perform analytical procedures without waiting for missing items.

Document accounting estimates

Supply memos for valuation reserves, allowance calculations, and significant estimates to speed CPA inquiries and reduce clarification rounds.

Use version control

Label drafts clearly (Draft v1, Final) and lock final PDFs before sending to avoid inadvertent post-review edits.

Confirm recipients' format

Ask lenders or recipients in advance whether they require original signatures, notarization, or certified copies to avoid rework.

Common preparation errors that delay or invalidate reviews

Incomplete supporting schedules cause prolonged inquiry cycles and additional fees from the CPA.
Mismatched entity names or addresses lead to rejected submissions from banks or closing agents.
Undocumented accounting estimates prompt qualifiers or emphasis-of-matter paragraphs in the CPA report.
Sending editable drafts without a signed final copy can lead to version disputes and acceptance delays.

Consequences of inaccurate or misrepresented reviewed financials

Lender denial: Loan approval may be revoked

Contract breach: Covenant violations and penalties

Regulatory scrutiny: Possible investigations or enforcement

Tax exposure: IRS adjustments and penalties

Reputational harm: Loss of investor trust

Professional liability: CPA disclosures or resignation

Typical eSignature vendor pricing and capability snapshot relevant to reviewed statements

Compare core pricing and capabilities for eSignature platforms commonly used to distribute reviewed statements; signNow appears first in the comparison per platform conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Real-world examples showing how reviewed statements are used

These summaries illustrate common scenarios where reviewed statements supported business or financing objectives.

Martin Properties (Real Estate)

A regional property manager prepared reviewed statements to support refinancing discussions.

The CPA issued a review report confirming plausibility of results.
"I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Optica Ventures (Private Finance)

A small investment firm used reviews to validate interim financials before a bridge financing.

Review provided lenders with moderate assurance quickly.
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Frequently asked questions about Financial Reviewed Statements

Answers to common legal, procedural, and delivery questions about reviewed financial statements and related e-signature issues.

Need help? Contact support

Are reviewed statements legally valid for lenders?
Yes. Reviewed financial statements are commonly accepted by lenders as evidence of financial condition; acceptance depends on the lender's underwriting criteria rather than a single legal requirement.
Can a CPA review report be electronically signed?
Yes. Electronic signatures are legally enforceable in the U.S. under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; ensure the eSignature process preserves intent, attribution, and retention.
What distinguishes an audit from a review?
An audit provides reasonable assurance based on substantive testing and internal control evaluation; a review provides limited assurance through analytical procedures and inquiries per AICPA standards.
Who is authorized to sign the review report?
A licensed CPA or a firm partner conducting the engagement should sign the report; the signature should identify the firm and include the date and city/state of issuance.
What supporting documents should be included?
Include trial balance, reconciliations, bank statements, aged receivables/payables, and significant contracts; these expedite the CPA's inquiries and reduce follow-up requests.
How long must I retain the files?
Retain reviewed statements and supporting records at least three years for tax audit purposes (IRC §6501(a)), longer if industry rules or potential litigation apply.

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