Global accounting organization the International Federation of Accountants released, in conjunction with CPA Canada, a guide for professional accountants conducting review engagements in compliance with International Standard on Review Engagements.
The Guide to Review Engagements addresses ISRE 2400 (Revised), effective for periods ending on or after Dec. 31, and is especially geared to accountants operating in small- and medium-sized practices.
“Many small- and medium-sized entities (SMEs) around the world are not required, or do not elect, to have an audit,” said SMP Committee Chair Giancarlo Attolini, in a statement. “They may, however, wish to enhance the credibility of, and confidence in, their unaudited financial statements by having some degree of independent assurance on them. A review engagement, which offers limited assurance, may be the ideal solution. The guide can help practitioners prepare themselves to meet the potentially increasing demand in this area.”
The guide includes illustrative examples, relevant extracts from the standard, practical points for practitioners’ consideration, tips on efficiently implementing the standard, and checklists and forms that can be adapted to meet particular requirements and circumstances.
To assist IFAC member organizations, the SMP committee has also updated its Companion Manual, a supplementary user guide of the committee’s implementation guides. This, the article “Review Engagements for SMEs: Limited Assurance, Numerous Benefits,” and other resources are available in the Implementation Links section of the IFAC website.