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NATURE OF THE ENGAGEMENT
These engagements are
carried out in
accordance with “international
standards on auditing”
and “international
standards on review
engagements” both
issued by IAASB(1)
of IFAC(2).
The audit
engagement includes;
examination on test
basis evidence
supporting the amounts
and disclosures in
financial statements,
assessment of accounting
principles, assessment
of significant estimates
made by management,
evaluation of overall
financial statement
presentation. The
review engagement is
primarily limited to
inquiries of company
personnel and
application of
analytical procedures to
financial data.
The purpose of the audit
is to express an opinion
whether the financial
statements present
fairly, in all material
respects, the financial
position and financial
performance of the
company in accordance
with the relevant
financial reporting
framework
The purpose of the
review
is to state whether
anything has come to our
attention that causes us
to believe that the
financial statements do
not present fairly, in
all material respects,
the financial position
and financial
performance of the
company in accordance
with the relevant
financial reporting
framework.
At completion of the
engagements, an
“independent audit
report” or “an
“independent review
report” is submitted to
our client. Naturally,
both reports are
prepared in accordance
with standards mentioned
in the first paragraph.
Though it is very neat
in what is said above,
let’s say it one more
time; review engagement
provides less assurance
than audit.
Footnotes:
(1) IAASB: International
Auditing and Assurance
Standards Board
(2)
IFAC: International
Federation of
Accountants
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