A review engagement is a type of engagement that provides a limited level of assurance that a company’s financial statements comply with the applicable financial reporting framework.
It gives users limited assurance on the accuracy or correctness of financial statements.
A review engagement takes less time than an audit engagement since there is less effort involved.
A review engagement is preferred when the company’s financial statements have already been prepared and certified to be accurate, a company engages an external accountant to review the financial statements. Since the financial statements have already been certified as accurate, the external accountant is required to provide negative assurance that the financial statements are free of material misstatements.