A6/M5 Review Engagement Report

Question 1

which paragraph should an accountant add to the standard review report when it’s necessary to communicate a matter that is NOT presented in the FS (such as discovery of subsequent event)?

Answer 1

The other-matter paragraph

Question 2

which paragraph should an accountant add to the standard review report when it’s necessary to communicate a matter that is presented or disclosed in the FS?

Answer 2

the emphasis-of-matter paragraph

Question 3

what are the reporting options for an accountant to report when client wants to present comparative FS of current and prior periods with different services provided?

Answer 3

• issue a CY service report with an extra paragraph describing the responsibility for the PY report and include a statement that no service procedures were performed after date of the PY report
• Issue two separate reports, a service report for CY and a service report for PY
• issued a combined report, including both full reports and a statement that no PY service procedures were performed after the date of PY report

Question 4

what should predecessor should do when they are asked to reissue prior report (audit, review, and compilation)?

Answer 4

• read the new FS and the report of current period
• compare the prior period statements with those issued previously and currently
• obtain a letter from the successor accountants