Year-End Financial Statement Review

Annual Financial Statement Review in the US: Legal Support

Conducting an annual financial statement review is a crucial step for companies seeking to comply with financial and legal requirements in the US. This procedure helps identify potential risks, improve financial management, and ensure transparency for investors, auditors, and government agencies. Legal support guarantees the process meets regulatory requirements and protects the company's interests.

What's Included in the Annual Financial Review

The service covers comprehensive verification of key financial documents, including:

• Balance sheets, income statements, cash flow statements;
• Analysis of accounting policies and principles;
• Compliance verification with GAAP or IFRS standards;
• Assessment of contractual obligations and tax liabilities;
• Risk analysis related to corporate structure and internal controls.

The supporting attorney also monitors proper financial disclosure for SEC filings or internal investors.

Why Legal Involvement in Annual Reporting is Essential

Improperly prepared or incomplete financial statements may lead to penalties, tax audits, or litigation. An attorney helps:

• Ensure corporate reporting compliance with current legislation;
• Minimize risks of violating tax and financial regulations;
• Identify gaps in internal documentation;
• Prepare the company for auditor or government inspections;
• Align financial statements with investor/partner requirements.

Legal support provides not just compliance review but strategic assistance for confidently closing the fiscal year.

Attorney Responsibilities During Financial Review

Attorneys provide comprehensive support beyond document review:

• Analyze financial contracts, tax returns, vendor agreements;
• Identify financial-legal risks related to disclosures;
• Collaborate with accountants and auditors to unify data;
• Advise on tax implications and legal structuring of transactions;
• Prepare reports with findings and action recommendations.

When and Who Needs Annual Review Services

The service is essential for:

• Companies preparing SEC filings;
• Businesses seeking investors or financing;
• Startups transitioning to full accounting systems;
• Companies changing corporate structure, jurisdiction, or preparing for M&A.

Legal review is also valuable before internal audits or tax inspections.

Additional Benefits of Legal Support

• Preparation of supporting documentation for tax authorities;
• Identification of internal financial policy violations;
• Assistance with amended filings;
• Defense during potential tax disputes or audits;
• Support during independent audits.