— Review Engagement Sample Review Checklist Client:

Sample Review Checklist — Review Engagement
Client: ___________________________________ Balance Sheet Date: ________________
Instructions
This form should be completed as a guide for reviewing a review engagement. Any item
answered "No" should be explained in the "Comments" column or in an attached memorandum.
Action/Decision
Based on my review, I am satisfied that:
1.
2.
3.
4.
5.
We considered whether the firm was
independent.
We established an understanding with the client,
regarding the services to be performed, and
included a copy of the engagement letter in the
engagement documentation.
If the engagement was originally intended to be
an audit, we documented the appropriateness of
the decision to step down.
We acquired the necessary knowledge and
understanding of:
a. The industry in which the client operates,
including the accounting principles and
practices generally used in the industry
sufficient to assist us in determining the
specific, nature, timing and extent of review
procedures to be performed.
b. The client’s business including a general
understanding of the client’s organization; its
operating characteristics; and the nature of
its assets, liabilities, revenues, and
expenses.
c. The accounting principles and practices used
by the client in measuring, recognizing,
recording, and disclosing all significant
amounts and disclosures in the financial
statements.
Based on
a.
Our understanding of the industry,
b.
Our knowledge of the client, and
c.
Our awareness of the risk that we may
unknowingly fail to modify our review report
on financial statements that are materially
misstated,
we designed and performed analytical procedures
and made inquiries and performed other
procedures, as appropriate, to accumulate review
evidence in obtaining limited assurance that there
are no material modifications that should be made
to the financial statements in order for the
statements to be in conformity with the applicable
financial reporting framework.
Yes
No
Comments
6.
7.
8.
9.
10.
11.
12.
We focused our analytical procedures and
inquiries in those areas where we believed there
is an increased risk of misstatements.
As part of our analytical procedures, we
investigated fluctuations or relationships that are
inconsistent with other relevant information or that
differ from expected values by a significant
amount by inquiring of management and
performing other procedures as necessary in the
circumstances.
We inquired the following of members of
management who have responsibility for financial
and accounting matters:
a. Whether the financial statements have been
prepared in conformity with the applicable
financial reporting framework
b. The entity’s accounting principles and
practices and the methods followed in
applying them and the entity’s procedures for
recording, classifying, and summarizing
transactions and accumulating information
for disclosure in the financial statements
c. Unusual or complex situations that may have
an effect on the financial statements
d. Significant transactions occurring or
recognized near the end of the reporting
period
e. The status of uncorrected misstatements
identified during the previous engagement
f. Questions that arose in the course of
applying the review procedures
g. Events subsequent to the date of the
financial statements that could have a
material effect on the financial statements
h. Their knowledge of any fraud or suspected
fraud affecting the entity involving
management or others where the fraud could
have a material effect on the financial
statements
i. Significant journal entries and other
adjustments
j. Communications from regulatory agencies
We inquired about actions taken at meetings of
stockholders, the board of directors, committees
of the board of directors, or comparable meetings
that may affect the financial statements.
We read the financial statements to consider, on
the basis of information coming to our attention,
whether the financial statements appear to
conform with the applicable financial reporting
framework.
We obtained reports from other accountants, if
any, who have been engaged to audit or review
the financial statements of significant components
of the reporting entity, its subsidiaries, and other
investees.
If there is any indication that information supplied
by the entity was incorrect, incomplete, or
otherwise unsatisfactory, we requested that
management consider the effect of these matters
on the financial statements and communicate the
results of its consideration to us.
We considered the results communicated to us by
management and the effect, if any, on our review
report.
We performed any additional procedures we
deemed necessary to obtain limited assurance
that there are no material modifications that
should be made to the financial statements in
order for the statements to be in conformity with
the applicable financial reporting framework.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
If the financial statements contain a departure
from the applicable financial reporting framework
that is material to the financial statements, we
considered whether modification of the standard
report is adequate to disclose the departure.
If we concluded that modification of the standard
report is appropriate, we disclosed the departure
in a separate paragraph of the report, including
the effects of the departure on the financial
statements, if such effects have been determined
by management or are known as the result of our
procedures.
If we believe that modification of the standard
report is not adequate to indicate the deficiencies
in the financial statements as a whole, we
withdrew from the engagement and provided no
further services with respect to those financial
statements.
We obtained a management representation letter.
If supplementary information accompanies the
financial statements, we modified the report to
indicate the degree of responsibility, if any, we
are taking with respect to such information.
We included a reference to the report on each
page of the financial statements and
supplementary information.
We documented any significant unusual matters
that we considered during the performance of the
review procedures, including their disposition.
All required forms have been completed.
All questions, exceptions, or notes, if any, posed
during the work have been followed up and
resolved, and review notes and "to do" lists have
been removed from the engagement
documentation.
The review report is not dated earlier than the
date on which we accumulated review evidence
sufficient to provide a reasonable basis for
concluding that we have obtained limited
assurance that there are no material
modifications that should be made to the financial
statements in order for the statements to be in
conformity with the applicable financial reporting
framework.
I approve issuance of the review report.
Completed by: _________________________________ Date: ____________________
More information on this topic is included in the AICPA Management of an Accounting Practice
Handbook which is also available electronically in the AICPA Online Professional Library as well
as in additional AICPA practice management publications.
.