Six elements of a review engagement to give limited assurance in contrast with UK GAAP

A common example of a limited assurance engagement is when an accountant is engaged to review a set of accounts. The elements of a review engagement are:
 
• a three party relationship between:
– a professional accountant
– a responsible party (the board of directors of the company whose financial statements are being reviewed)
– intended users (the readers of the financial statements with the accompanying review report)

• a subject matter (the performance of the company)
• subject matter information (the financial statements being reviewed)
• suitable criteria (UK GAAP)
• sufficient appropriate evidence (the results of the procedures that the reviewer carries out)
• a written report (the review report that is issued. Note that, because this is only a limited assurance engagement, the report will be worded to offer negative assurance only: ‘Nothing has come to our attention that causes us to believe that the financial statements do not comply with UK GAAP . . ."