When would I need a review engagement instead?

The next step up on the financial reporting ladder from a compilation engagement is a review engagement. Its sophistication makes it a better fit for mid-sized and complex businesses. For maturing companies, it’s a preparatory step in the transition to audited financial statements. It’s also required by third parties looking to get a reliable and more detailed view of your company’s financial performance when obtaining financing, updating investors, or selling the business. 

This kind of statement includes some validation by the accountant and could include reviewing your accounting practices, management controls, or fraud detection. The review financial statements need to comply with applicable accounting standards and must include detailed disclosure information.