ISRE (Revised),. Engagements to Review. Historical Financial. Statements. Basis for Conclusions. Prepared by the Staff of the IAASB. September International Standard on Review Engagements (ISRE) , “Engagements to. Review Financial Statements” should be read in the context of the “Preface to. ISRE (Revised), Engagements to Review Historical Financial Statements. REQUEST FOR COMMENTS The International Auditing and Assurance.

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This will make it impossible to restrict who has access to them, and it will therefore isde be possible to avoid risk by means of a contract. In the UK, there are two financial reporting frameworks: Our responsibility is to express a conclusion on the condensed interim consolidated financial statements based on our review.

Review Report

It is important to note that ISRE Revised does not require any such contract, that this approach can only be effective if iisre the third parties are party to the contract, and that it may prove difficult and time-consuming to negotiate if there are numerous third parties.

It may be possible to develop a bespoke assurance engagement referencing this standard and guidance. An example of this statement is provided in Appendix 6.

ISRE Revised also requires us to comply with relevant ethical requirements. We have performed procedures, primarily consisting of making enquiries of management and others within the entity, as appropriate, applying analytical procedures, and evaluating the evidence obtained. It is probable that in most cases assurance review reports will be obtained issre general purpose financial statements. Based on our review, nothing has come to our attention that causes us to believe that the financial statements have not been: Our responsibility is to express a conclusion on the financial statements.

Appendix 4 sets out an example unmodified assurance review report for a UK incorporated company. The Management Board is also responsible for such internal control as the Management Board regised is necessary to enable the preparation of condensed interim consolidated financial statements that are free from material misstatement, whether due to fraud or error. The report will need to be amended appropriately.

The company has at no time during the year entered into any arrangement, transaction or agreement to provide credit facilities including loans, quasi loans or credit transactions for directors, nor to guarantee or provide security for such matters, except as disclosed in the financial statements. An assurance review engagement reviwed therefore a flexible and proportionate service which can be adapted to suit different clients. The procedures selected will depend on what we consider necessary applying our professional judgement, based on our understanding of the [company] [limited liability partnership] and its environment, and our understanding of [applicable financial reporting framework] and its application in the context of your [company] [limited liability partnership].


Assurance review reports provide a conclusion on the basis of the work reviswd, which is limited in scope according to the judgement of the chartered accountant. There has been widespread use of this technical release and ISRE Usre to perform assurance review engagements. We have reviewed the financial statements of XYZ Limited for the year ended [date], which comprise the [specify the titles of the primary statements] and notes to the financial statements.

It also provides, in the appendices, illustrative letters and reports to support these engagements. Skip to main content.

Accordingly, we do not express an audit opinion on these financial statements. Any other matters relevant to the financial statements that have been represented by management. In performing the engagement, the following additional sources of guidance and standards may be helpful:. References in the subsequent sections of this technical release are as follows: Contact us to discuss your requirements.

An extract is as follows:. Yours faithfully Signed on behalf of the board of directors by: This includes reduced disclosures for the individual accounts of qualifying entities and for entities qualifying as small entities; and. Based on our review, nothing has come to our iere that causes us to believe that the financial statements have not been:.

This appendix is 22400 to support the application of this guidance to the micro-entities regime. The illustrative report in Appendix 4 includes a paragraph to this revises, which is equivalent to the Bannerman paragraph used in audit reports, and relies on the same legal precedent. When all the third parties can be identified, the accountant may seek to manage their risk with a tri- partite or multi-partite engagement contract with the client and the third parties.

Independent Review Engagements

In other types of entity they will be equivalent persons, such as the partners, proprietors, committee of management or trustees. As [directors] [designated members] you must not approve the financial statements unless you are satisfied that they give a ixre and fair view of the assets, liabilities, financial position and profit or loss of the [company] isrre liability partnership].

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The following frameworks will be acceptable:. Example extracts to include in an engagement letter can be found in Appendix 1.

In preparing these financial statements, the directors are required to: When all regised companies are added to the large number of unincorporated businesses out there, there is a substantial potential market for chartered accountants to offer their assurance skills to businesses who are not required to have an audit. Any decision as to whether, and to what extent, these methods of assurance should be used is a matter of professional judgement.

Written representations are required from management by ISRE A review is limited primarily to inquiries of personnel of the entity and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit.

TECH 09/13AAF (Revised) – Assurance Review Engagements on Historical Financial Statements (2018)

The contract would accept that they owe a duty of care not only to the client but also to those third parties, and could then include provisions limiting liability if appropriate. An assurance review report appended to general financial statements can, however, include a paragraph disclaiming liability to third parties.

For the chartered accountant conducting an assurance review engagement instead of an audit, the following benefits should result:. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true 240 fair view of the state of affairs of the company revsed the profit or loss of the company for that period.


We will perform procedures, primarily consisting of making enquiries of management and others within the entity, as appropriate, applying analytical procedures, and evaluating the evidence obtained. It should not be regarded as a substitute for reading and understanding ISRE Revised which remains the appropriate standard to support assurance review engagements and is available from IFAC. In summary, the options available are: Internationally recognised as a source of expertise, the Faculty is responsible for submissions to regulators and standard setters and provides a range of resources to professionals, providing practical assistance in dealing with common audit and assurance problems.