Knowledge Centre

An external accountant issues a report on your financials, giving banks, regulators, and funders greater confidence in your numbers.

Independent Reports on Financial Statements

1. What You Need to Know 

Independent reports add credibility by showing that a qualified accountant has considered your financial statements. 
Depending on requirements, this could be a compilation, factual findings (agreed-upon procedures), independent review or in some cases an audit (done by a IRBA registered auditor). Each has a different approach and may be just a statement or a level of assurance, but all give third parties greater perceived confidence in your financials.  

2. Why It Matters to You 

Independent reports open doors and reduce risk. 
Make your financials acceptable to banks, regulators, and funders. 
Provide assurance that increases trust without unnecessary cost. 
Protect directors by showing compliance with legal obligations. 
Strengthen your credibility with stakeholders. 

3. Frameworks, Standards, or References 

Each type of report is governed by international standards and local law. 

  • Compilation Engagements → ISRS 4410 (no assurance, but properly prepared financials). 

  • Agreed-Upon Procedures (Factual Findings) → ISRS 4400 (tests specific items and reports facts). 

  • Independent Reviews → ISRE 2400 (limited assurance, Companies Act authorisation for CBAPs). 

  • Audits → ISAs (reasonable assurance, only performed by IRBA registered auditors). 

  • References: Companies Act requirements, IFRS/IFRS for SMEs reporting frameworks, CIBA Practice Standards. 

  • What your accountant will actually do: 

  • Determine which report is legally or contractually required. 

  • Perform the necessary work (prepare, review, or test). 

  • Issue a signed report under the correct standard. 

  • Submit or assist with submission to the regulator, funder, or bank. 

4. How to Apply  

Steps to get the right report for your business: 

  1. Identify who requires the report (bank, regulator, donor, investor). 

  2. Share your financial statements and supporting records with your accountant. 

  3. Agree on the type of engagement (compilation, review, factual findings, or audit). 

  4. Accountant performs procedures according to standards. 

  5. Submit the independent report with confidence. 

5. Common Mistakes to Avoid 

Avoid these errors that waste money or cause rejection: 

  • Requesting an audit when a review would suffice. 

  • Submitting statements without an independent report. 

  • Assuming all reports give the same level of assurance. 

  • Missing regulator or funder deadlines. 

9. Need Help? 

Still stuck? We’re here to help. 

  • [Open a Support Ticket – tagged: Independent Reports]