Other reports
In most jurisdictions, financial statements form only
one part of the financial information that a public
company prepares. In addition to publishing full
financial statements every year, public companies
typically also need to issue less detailed financial
information at other points throughout the year. In
most cases, auditors review this financial
information, but this review is not an audit. Instead,
the auditors make inquiries, apply analytical and
other review procedures, and communicate whether
anything has come to their attention that suggests the
financial information is not prepared, in all material
respects, in accordance with the relevant GAAP.
A review does not involve testing or other
corroborative procedures.
Before the audited financial statements are
published, a public company will frequently make a
preliminary announcement of its results for the year.
These announcements are typically unaudited
because the audit report on the financial statements
has usually not been issued by that time. However,
the company will generally ask its auditors to read the
announcement prior to its release and inform them of
any material inconsistencies which have come to
their attention.