Engagements to Review Financial Statements

Philippine Standard on Review Engagement(PSRE) -is directed towards the review of financial statements. Application Review of historical financial information.
Nature of Service Moderate assurance. review involves: 1. limited investigation of much narrower scope than an audit and 2. for the purpose of providing limited (negative) assurance that the statements are presented in accordance with financial reporting standards (FRS)

Objective of a Review Engagement -is to enable an auditor to state whether, on the basis of procedures which do not provide all the evidence that would required in an audit, anything has come to the auditors attention that causes the auditor to believe that the financial statements are not prepared, in all material respects, in accordance with an identified financial reporting framework (negative assurance).

General Principle of a Review Engagement

The auditor should comply with the Revised Code of Ethics for Professional Accountants in the Philippines.
a. b. c. d. e. f. g.

Independence Integrity Objectivity Professional competence and due care Confidentiality Professional behavior Technical standards

And the auditor should conduct a review in accordance with PRSE 2400. The auditor should plan and perform the review with an attitude of professional skepticism.

Scope of a Review Moderate Assurance Terms of engagement Planning Procedures for the Review Conclusions and Reporting