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1. What’s an independent partner review? His role and responsibility?
2 What’s a review engagement and what does it entail?Thanks.
Independent partner review: this is a peer review (ie an independent partner reviews an audit that another partner was in charge of). This can be done after the audit has been finished and signed off (cold review) of during an audit (hot review).
It is quality control measure to ensure that all documentation is complete, and that appropriate planning and other audit work has been performed. The audit opinion will also be reviewed. Hot reviews are done for tricky audits to decrease risk for the audit firm.
A review engagement is where the FS are reviewed but the work falls short of an audit. It is sometimes asked for by companies that are exempt for audits to give members and directors some assurance that the FS etc are OK. The opinion at the end of the engagement will be a limited (negative) opinion ie that nothing was found leading to a conclusion that the FS have not been prepared properly. Review engagements are cheaper than statutory audits where a positive opinion is required.
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