Review
A review engagement is an engagement that can be offered as an alternative to the audit and intended to provide a basic level of assurance that financial statements are free from material misstatement.
A review engagement, by its nature, includes the key elements of an audit. Thus the assessment of client business principal risks is ensured.
Procedures comprising primarily inquiries of entity personnel and analytical procedures applied to financial data are its distinguishing features as compared to an audit.
Since a review is substantially limited in scope than an audit, there is a cost effective solution for the businesses requiring a lesser level of assurance.
When & Why Required
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Well-run and well-controlled business
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Limited budget for carrying out the assurance engagement
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Group consolidation in case if the entity’s size is immaterial
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When the information concerning the material principal risks of business and their impact on the Company’s financial statements is needed to the Company’s management
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In view of legislative reforms in Ukraine a review engagement along with tax review may become even more efficient than audit when the identification of potential tax risks, being the major ones, is required