A review engagement may help the accountant to report weaknesses, to the
management, that come to their attention and provide limited assurance that
no material modifications required to the financial statements in conformity
with the financial reporting framework.
At Universal Accountants, our team makes enquiries of management and
others, review all material items in the financial statements, and perform
analytical procedures to gain (a) better understanding of plausible relationships
of recorded amounts and (b) degree of assurance that:
- the F/S give a true and fair view
- the F/S comply with the chosen financial reporting framework
- management roles are well defined for producing the accounts
Review Engagement Procedures include:
- Inquiries as to the accounting practices and principles and factors which
might lead to increased risk that the F/S may contain material
- Procedures for recording the financial information’s.
- Suitability of Accounting estimates.
- Undisclosed related party transactions.
- Going concern problems.
- Complex, unusual or significant transactions or events.
- Actions taken at directors’ meetings.
- Management Written representations regarding the accuracy of all
o Management’s responsibility for internal control and to prevent
and detect fraud
o Incidence of fraud
o Analytical procedures regarding comparisons
o Information related to subsequent events
o Ratios from recorded amounts and their Plausible relationships