Related services compnse reviews, agreed upon procedures and


In a review engagement, the auditor provides a moderate assurance that information subject to review is free of material misstatement. This is expressed in the form of negative assurance. The objective is to enable an auditor to state whether, on the basis of procedures which do not provide all the evidence that would be required in an audit, anything has come to the auditor’s attention that causes him to believe that the financial statements are not materially misstated.

A review involves inquiry and analytical procedures designed to review the reliability of assertions that is the responsibility of one party for use by another a party.

The review usually does not comprise assessment of control risk, tests of controls and of responses to inquire by obtaining corroborating evidence, which are ordinarily performed in an audit. Therefore the level of assurance provided in a reviews is less than that given in an audit.


The auditor is engaged to carry out such procedures which the auditor, the entity and any appropriate third party have agreed and to report on factual’ findings. The auditor does not provide any opinion. The users have to form their own conclusions. The report is restricted to those parties who have agreed to the -procedures is restricted to those parties who have agreed to procedures.


The auditor is engaged to provide his accounting expertise to collect, classify and summarize financial information. This comprises a compilation engagement, The detailed data is reduced to a manageable and understandable form.

Compilation is not designed to enable the auditor to express any assurance on the financial information. However, where financial statements are compiled by an auditor the users place more confidence on financial statements as a result of the involvement of a professional accountant.

Posted on November 3, 2015 in Related Services

Share the Story

Back to Top
Share This