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hello sir mike,
i wanted to know whether my understanding is correct, i was reading through various sources on review engagements and in many places it says that the difference in procedures for audit and review engagements is basically that review only has Analytical Procedures And Enquiry,
that seemed to be fair for assignments like forecasts , but when i was going through procedures for due diligence and forensic audits many of them involved inspection of documents,observation and other procedures as well,
so basically sir what procedures do other assignments involve?
They differ according to the nature of the assignment
If it’s a review engagement then, as you correctly state, it’s confined to analytical review and enquiry
If it’s due diligence or prospective financial information or forensic or …
… each has its own requirements
so due diligence and forensic may naturally stray away from analytical and enquiry due to its nature,
Thanks sir!
Absolutely correct
It’s a bit analogous to a private entity that doesn’t need an audit. However, the financial statements shall be prepared by someone that is qualified to be an entity’s auditor
Now, in the course of preparing the financial statements, is it not reasonable for the reporting accountant to ask for confirmation (for example, from the bank) about certain matters to be included within the financial statements
That’s more than simple ‘preparation of financial statements from information and explanations …’
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