A4 Review Engagements

Question 1

Review Engagements

Answer 1

Reviews are a higher level of service than a preparation or compilation because of the expression of a limited assurance. Inquiry and analytical procedures are performed to provide reasonable basis for conclusions. There is no requirement to assess or understand internal controls.

These are done at public companies (issuers) only at interim dates, & anytime for private companies (nonissuers).

Limited assurance is given

Independence is required

Question 2

Objective of Review Engagements

Answer 2

The accountant’s objective is while performing a review of the FS is to obtain a limited assurance as a basis of reporting whether they are aware of any material modifications. This is done through inquiry or analytical procedures.

Question 3

Review Requirements

Answer 3

U LIAR CPA

Understanding with client

Learn & obtain sufficient knowledge of entity
Inquires should be addressed
Analytical Procedures should be performed
Reviews other procedures to be performed

Client representation letter should be obtained
Profession judgement should be exercised
Accountant should communicate results

Question 4

Review Representation Letter

Answer 4

A representation letter is required from mgmt for all FS & periods covered by the review report which is done the same date as the report.