In certain circumstances when applying for a loan or maintaining a loan from a bank, they require yearly reviewed financial statements signed off by a designated accountant. In the event you fail to provide the reviewed financial statements you can be in default of the loan agreement and the bank can request the money back.
The difference between these financial statements and your regular financial statements is that reviewed financial statements provide moderate assurance to the bank. With specific review engagement procedures through analysis, inquiry, and discussion the designated accountant assures the figures on the statements are plausible.
This gives the bank peace of mind to ensure your meeting the minimum ratio's to maintain the loan and that there's no risk in losing the money.
