[AR-C 90][SSRASs] Review Engagement 와 Review Report

먼저 Review Engagement에 대한 특징들을 정리해보겠습니다.

■ A review does not contemplate obtaining an understanding of internal control.

 

■ A review is in accordance with SSARSs issued by the AICPA.

↔ GAAS apply to audits, not reviews.

 

■ Only review engagement under SSARSs or an audit requres the accountant to obtain a representation letter.

- The responsible party should provide a letter of representations addressed to the practitioner.

 

■ Reveiw Engagement consists of the followings(AR-C 90).

(1) Inquires of management

- Inquiries concerning unusual or complex situations that may have an effect on the financial statements.

(2) Analytic procedures applied to Financial data

○ It is performed to identify relationships and items that appear unusual.

○ One common analytic procedures is the comparison of the financial statements with statesments with statesment for prior periods.

 

(3) Written management representations.

 

■ Any attest service, including audits and reviews, requires the accontant to be independent in mind and appearance.

○ Under the Code of Professional Conduct, the accountant may not have a direct financial interest or a material indirect financial interest in an attest client.

 

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두번째로는 Review Report에 대한 내용들을 정리해 보도록 하겠습니다.

 

■ An attestation examination report should express an opinion on

(1) a written assertion or

- A review report may provide limited (negative) assurance. 

(2) directly on the subject matter.

 

■ According to AR-C 90, financial statements reviewed by an accountant should be accompanied by a report stating that a review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.

- Accordingly, no such opinion is expressed.

- Reviews have a considerably smaller scope than audits.

- The objective of a review is to express limited assurance that no material modifications should be made to the financial statements. Inquiries and analytical procedures should be designed to accumulate review evidence that will provide a reasonable basis for obtaining limited assurance. 

 

■ Review engagements provide only limited assurance. 

- An opinion is not expressed in a review engagement. 

 

■The attestation review report report should (1) be in writing and (2) state the conclusion on the written assertion or directly on the subject matter. 

○ The assertion should accompany, or be clearly stated in, the report if the conclusion is on the assertion. 

 

■ To obtain a reasonable basis for the expression of limited assurance, the accountant must apply analytical procedures, make inquiries of management and other entity personnel, and obtain written representations from management. 

○ Accordingly, the review report states, “Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.”