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Financial Statement Review Checklist
Balance Sheet Review
Verify the accuracy of all asset and liability balances.
Confirm that all fixed assets are properly listed and valued.
Ensure all liabilities are recorded, including contingent liabilities.
Review accounts receivable and accounts payable for aging and collectability.
Check the equity section for accurate reflection of stock issuances and retained earnings.
Income Statement Review
Validate revenue recognition policies and ensure revenue is correctly recorded.
Analyze expense accounts for reasonableness and proper categorization.
Compare current period income statement to prior periods for significant variances.
Ensure all non-operating income and expenses are properly classified.
Review the tax provision and ensure it is calculated and recorded accurately.
Cash Flow Statement Review
Ensure the accuracy of cash flows from operating activities.
Verify cash flows from investing activities, including capital expenditures and asset sales.
Review cash flows from financing activities, including debt issuance and repayment.
Reconcile the ending cash balance with the balance sheet.
Check for proper disclosure of non-cash transactions.
Notes to Financial Statements Review
Ensure all significant accounting policies are disclosed.
Verify that all material subsequent events are appropriately disclosed.
Check for proper disclosure of related party transactions.
Review the notes for completeness and accuracy of financial instrument disclosures.
Ensure compliance with regulatory and reporting requirements.
Regulatory Compliance Review
Confirm adherence to industry-specific regulations and guidelines.
Ensure that financial statements include all required disclosures.
Review compliance with internal control over financial reporting requirements.
Verify that all necessary filings and submissions to regulatory bodies are up to date.
Check for proper documentation and support for all regulatory compliance assertions.
