Understanding the entity's governance structure
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what is a review engagement Informational
- Reviewing the statement of changes in equity Understanding the client's accounting system and internal control procedures (limited in review)
- Analyzing key balance sheet ratios (e.g., current ratio, debt-to-equity ratio)
- Continuous professional development for review engagement practitioners Understanding the client's business cycles in a review engagement
- Communicating significant matters to those charged with governance Obtaining an understanding of the entity's internal controls relevant to financial reporting (limited in review)
- Forming the conclusion on the financial statements The process of issuing the review engagement report
- Communicating the results of the review engagement to management
- Assessing the potential financial statement impact of significant litigation and claims Considering the need for disclosure of contingent liabilities related to litigation and claims
- Understanding the client's use of IT systems
- Learning from past experiences and peer reviews Striving for continuous improvement in the performance of review engagements
- Elements of a review engagement report
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