Reviewing the classification and presentation of financial statement items Understanding the requirements of the applicable financial reporting framework (e.g., GAAP, IFRS)
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what is a review engagement Informational
- Understanding the entity's performance measures
- Follow-up procedures after the review engagement report is issued Considerations for subsequent review engagements of the same client
- Ensuring that the financial statements are fairly presented in accordance with the applicable financial reporting framework
- Documenting the consideration of fraud in the audit file Evaluating the overall presentation of the financial statements
- Evaluating management's assessment of the entity's ability to continue as a going concern
- Modifying the review engagement report when pervasive misstatements exist Communicating identified misstatements to management and those charged with governance
- Obtaining a deeper understanding of the nature and purpose of related party transactions
- Documenting all significant aspects of the engagement to support the conclusions reached Following the firm's policies and procedures for risk management
- Identifying and assessing the risk of material misstatement at the financial statement level
- Referring to specialized cybersecurity professionals if necessary Performing a review of regulatory compliance matters (if part of the engagement scope)
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