Field Notes ·
When an Interim Review Is Enough—and When It Is Not
A plain comparison of limited assurance reviews versus full statutory audits for lender packets and parent reporting.
An interim review provides limited assurance. The auditor asks questions, performs analytical procedures, and reads the interim statements—without the depth of a full statutory audit. A review report is useful for parent packs and some lender updates; it is not a substitute when covenants or law require an audit opinion.
Choose a review when the audience accepts limited assurance and when the accounts are relatively stable. Choose a full audit when inventory is complex, when it is a first-year engagement, or when users need the higher level of comfort that comes with substantive testing and controls work.
Fees and timelines differ accordingly. Reviews compress fieldwork; audits expand sampling, confirmations, and observation. Mixing the two mid-year without a revised engagement letter creates confusion for both finance and the assurance team.