What is a Notice to Reader report?

A Notice to Reader report is indeed an unaudited financial statement where the accountant takes the information provided by the owner and performs calculations to present it in a structured format. This type of report is typically prepared for small businesses that need financial statements without the extensive procedures involved in a full audit.

In this report, the accountant does not express an opinion on the financial statements, nor do they verify the information's accuracy through detailed examination. Instead, they merely compile and format the information based on what has been provided to them. This makes it more cost-effective for businesses that may not require an in-depth audit or its associated costs.

The other options relate to different types of financial reporting. An audited statement implies thorough verification, which is not part of a Notice to Reader report. A detailed audit requiring financial verification typically refers to a higher level of financial scrutiny and assurance. Lastly, a document requiring ownership proof is unrelated to financial reporting concepts.