Audit → Review

■ An accountant may be asked to change the engagement from an audit to a review.

The request may result from

(1) a change in circumstances affecting the entity’s requirements;

(2) a misunderstanding as to the nature of one of the services; or

(3) a scope restriction, whether imposed by the client or circumstances.

 

■ Before an accountant engaged to perform a higher level of service agrees to such a request, (s)he should consider

(1) the reason for the client’s request, particularly the implications of a scope restriction, whether imposed by the client or by circumstances;

(2) the additional effort required to complete the original engagement; and

(3) the estimated additional cost to complete the original engagement.

 

■ The report on the changed engagement should not mention(refer to)

(1) the original engagement,

(2) any auditing or review procedures performed, or

(3) the scope limitations that led to the changed engagement.

- the scope limitations that resulted in the change.