What is the cost benefit of an examination of financial records by review compared to an audit?

The review of financial records offers a cost-effective alternative to a full audit while still providing a meaningful assessment of the financial situation. During a review, the process typically involves analytical procedures and spot testing of transactions, allowing the reviewer to gain an understanding of the financial statements without incurring the higher costs associated with a full audit, which includes thorough examination and verification of every transaction.

This makes the review advantageous for organizations with limited budgets or smaller financial operations where a full audit may not be practical. While a review may not be as comprehensive as an audit, it still offers a reasonable level of assurance and insight regarding financial practices, making it a practical choice for many community associations.