Field Notes
Review versus audit — choosing the right engagement for your bank
A clear comparison of financial statement reviews and statutory audits for Taiwan borrowers preparing facility paperwork.
Banks and investors ask for different levels of comfort. A statutory audit provides an opinion after substantive testing. A review provides a conclusion based mainly on inquiry and analytical procedures. Intelligentbackends offers both; the right choice depends on what your facility letter actually requires.
Audit when
You need an opinion for shareholders, a parent consolidation, or a lender that specifies “audited financial statements.” Inventory-heavy manufacturers usually fall here.
Review when
The facility accepts reviewed statements, timelines are tight, and prior audited figures already exist. Reviews move faster when reconciliations are strong.
Do not assume
Always read the covenant language. Some agreements accept reviews only for interim periods and still require a year-end audit. We can help interpret the accounting deliverable — not the legal advice — during scoping.
Compare our review and audit pages, then contact the team with your bank’s wording.