Engagement Essentials

Chapter 9 REPORTING ON REVIEW ENGAGEMENTS

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

•     Identify the elements of the standard review report.

•     Recall when common modifications should be applied to the standard review report.

•     Identify when reviewed financial statements should be restricted-use.

•     Recall the report modifications required for Special Purpose Framework (SPF) financial statements.

RESOURCE

Appendix C—Sample Review Reports

Standard Review Reports

The standard review report as shown in appendix C-l includes a title with the word “independent” in it, indicating that it is the report of an independent accountant. Typically, the report is addressed to the appropriate level of management or the board of directors, although it may be addressed to the entity itself. The standard review report contains four separate paragraphs, of which three include headings. The introductory paragraph does not include a heading, but identifies the financial statements reviewed and entity to which the engagement applies. This paragraph should

•     identify the entity whose financial statements have been reviewed;

•     state that the financial statements identified in the report have been reviewed;

•     identify the financial statements that have been reviewed;

•     specify the date or period covered by the financial statements;

•     include a statement that a review includes primarily applying analytical procedures ...