Review Engagements

Question 1

What type of assurance is given in a review?

Answer 1

Limited or negative insurance

Question 2

What needs to be documented in the engagement letter?

Answer 2

1) Scope and objective
2) Responsibilities of the practitioner
3) Responsibilities of the responsible party
4) Statement that the engagement will be done in accordance with AICPA standards
5) Statement that a review is less in scope than an examination
6) Statement that identifies the measurement criteria to be used
7) Acknowledgement that the engaging party will provide a representation letter at the end of the engagement

Question 3

What procedures need to be performed under a review?

Answer 3

1) Analytical procedures
2) Inquiries of management

If analytical procedures are not applicable, then you need to perform other procedures to obtain that assurance

Question 4

T/F: Written representations should be obtained?

Answer 4

TRUE

Question 5

If the engaging party is the responsible party and refused to provide written representation, what should happen?

Answer 5

Withdrawal

Question 6

If the engaging party is NOT the responsible party and refuses to provide written representation, what should happen?

Answer 6

Try and obtain oral responses

Restrict report to certain parties

If you cannot obtain oral response, then you should withdrawal