Review Engagement
An engagement providing limited assurance, primarily through inquiry and analytical procedures.
For a nonissuer, a review falls under SSARS (AR-C 90), performed by accountants in public practice; AUD tests whether you can rank the engagement hierarchy by effort and assurance: preparation < compilation < review < audit. The classic “tell” is a fact pattern stating the CPA performed inquiry and analytical procedures but did NOT confirm receivables, observe inventory, or test internal controls — the answer is a review, and the report expresses limited (negative) assurance that the CPA is “not aware of any material modifications” needed for GAAP conformity. Watch for the independence trap: independence is required for a review (unlike a compilation, where a CPA may lack independence but must disclose it).
Don’t confuse a SSARS review with a review under the attestation standards (SSAE/AT-C), which covers subject matter other than historical financials, or an interim review of an issuer under PCAOB AS 4105. A review yields no audit opinion and never expresses positive (reasonable) assurance. Memory hook: a review only R-eads and R-easons (inquiry plus analytics) — no verifying, vouching, or confirming.
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