Review engagement report
A review engagement report is the accountant’s written conclusion after a review of financial statements, which gives limited assurance. It sits between a compilation, which gives none, and an audit, which gives reasonable assurance.
CPA Québec says a review of financial statements under the Canadian standard for review engagements, CSRE 2400, is a limited assurance engagement. It says the practitioner performs procedures, primarily making inquiries of management and others in the entity and applying analytical procedures, and evaluates the evidence obtained. BDC describes it as the next step up from a compilation, giving limited assurance on the validity of the entity’s financial information.
What the report can flag
The CRA’s Schedule 141 asks a corporation filing a T2 return whether the person who completed an auditor’s report or a review engagement report expressed a reservation, so the answer may also appear on the tax filing.
What to ask
- Is the full report available, with the notes, not just the statements?
- Does the report carry any reservation, and what was it about?
- Which year-ends were reviewed, and which were only compiled?
See quality of earnings vs audit and compilation, review and audit engagements.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Ordre des CPA du QuébecRegulatorCPAs and financial statements
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Canada Revenue AgencyGovernmentWhat is Schedule 141, General Index of Financial Information (GIFI) - Additional Information
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