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Review engagements
A review engagement is an independent assurance service conducted in accordance with review standards issued by the External Reporting Board. While it involves less extensive procedures and detailed testing than an audit, it still provides valuable oversight of financial statements.
Unlike an audit, which results in a positive assurance opinion, a review provides negative assurance—stating that nothing has come to the reviewer’s attention to suggest the financial statements are materially misstated.
Despite offering a lower level of assurance than an audit, a review engagement can be a valuable first step in obtaining independent assurance. Many organisations find that the process enhances their year-end procedures, as an independent and objective perspective helps identify areas for improvement in financial reporting and controls.
Agreed-upon procedure engagements
An agreed-upon procedures (AUP) engagement involves the execution of agreed procedures of a targeted nature and reporting exclusively on this. Independent assurance experts perform specific procedures tailored to address key areas of concern, focusing on selected aspects of operations, internal controls, or financial statements.
These engagements are highly customizable, allowing shareholders or management to gain assurance over specific issues. The success of an AUP engagement relies on clearly defining the scope and objectives at the outset to ensure alignment with stakeholders' needs. This can involve one or more of the following scopes:
- Testing specific account balances to address areas of concern
- Internal controls assessment/Systems review and testing
- Information technology assurance
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