Review Engagement (Limited Assurance): Definition and Example

The Review Engagement or Limited Assurance:

The review engagement or limited assurance is sometimes calling negative engagement. This type of engagement is different from a reasonable assurance engagement.

Normally, this engagement, auditor perform fewer procedures and review to support a conclusion on the financial statements in terms of whether anything has come to the auditor’s attention to indicated that the financial statements are not prepared in accordance with the specific accounting standard.

Review engagement provides the level of limited assurance to the users of financial statements as the result of the procedure that auditors use to review the financial statements.

In normal cases, the audit opinion in the assurance engagement is a negative opinion, for example, nothing comes to their attention that the financial statements that they review are not true and fair.

However, if the Review engagement could not obtain sufficient supporting documents to support their opinion, the audit should express the qualify option or disclaimers.


The best example of review engagement would be the engagement between external audit form to review the client’s financial statements.

In normal cases, this kind of engagement, the audit will perform fewer procedures that audit and the assurance that they provided to those financial statements is also limited.

If the auditor found no material misstatement, the auditor will at the end of it engagement issued the opinion to the financial statements that nothings come to their attention that financial statements are not prepared and present true and fair in all material respect.

Another example of review engagement will be agreed-upon procedures. Normally, agree upon procedures engagement is happen when the client wants the auditor to do or examine the certain areas of financial statements based on procedures set by them.

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