When is a review engagement appropriate?
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what is a review engagement Informational
- Adhering to data protection laws and regulations
- Analyzing key balance sheet ratios (e.g., current ratio, debt-to-equity ratio)
- Understanding the entity's financing arrangements
- Who uses the results of a review engagement?
- Documenting instances where professional skepticism was applied The role of the engagement quality control reviewer (if applicable)
- Modifying the review engagement report to refer to the special purpose framework used
- Scrutinizing information provided by management with a questioning mind Considering alternative explanations for financial statement fluctuations or unusual items
- Considering the sensitivity of the forecasts and projections to changes in key assumptions Understanding the intended use of the financial forecasts and projections
- Discussing the potential impact of uncorrected misstatements
- Comparing the entity's financial performance to industry peers Identifying unusual or unexpected relationships in the financial data
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