What is a Review Engagement?

Typically, a review engagement is requested by stakeholders in a company (bank, shareholders, etc.) to ensure that the amounts within the financial statements are plausible. Whereas in a Notice to Reader, there is no assurance provided, a review engagement provides a low level of assurance from the CPA. The accountant will perform various analytical procedures, as well as discussions with the client, to ensure that the financial statement information is plausible. Should the CPA find that the amounts in the financial statements are plausible, a review engagement report is issued.

A review provides what is called negative assurance. This is a low level of assurance, meaning that nothing has come to the attention of the accountant that would leave them to believe that the financial statements are not, in all material respects, in accordance with Accounting Standards for Private Enterprises (ASPE) or International Financial Reporting Standards (IFRS), depending on which standards the company follows.

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