Review engagement Report Explained Attestation Engagement SSAE

In this session, I cover a review engagement report under the attestation engagement.
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Attestation Engagement: This refers to an engagement where a practitioner (usually a certified public accountant or CPA) is engaged to issue a report on subject matter, or an assertion about the subject matter, that is the responsibility of another party. This is typically done in accordance with standards set by the American Institute of Certified Public Accountants (AICPA), such as the Statements on Standards for Attestation Engagements (SSAE).

SSAE (Statements on Standards for Attestation Engagements): These are standards issued by the AICPA for attestation engagements. They provide guidance on what an attestation engagement entails, how it should be conducted, and what should be reported.

Review Engagement Report: In the context of SSAE, a review engagement is a specific type of attestation engagement where the practitioner performs procedures to provide a limited level of assurance on the subject matter. It is less in scope than an audit, but more than a compilation. The review engagement report reflects the practitioner's conclusion based on the review of the subject matter or the related assertion.

In a typical Review Engagement Report under SSAE standards, the practitioner would perform analytical procedures and inquiries to obtain limited assurance that there are no material modifications that should be made to the subject matter for it to be in conformity with the applicable criteria (like financial reporting framework, internal control over financial reporting, etc.). The report would include:

An introduction about the subject matter or the assertion being reported on.
A section describing the practitioner's responsibility and the nature of the review engagement.
A conclusion that provides the practitioner’s opinion on the subject matter or assertion based on the review.
The level of assurance provided in a review engagement is less than an audit but more than a compilation. It's important to note that the practitioner does not express an opinion or provide a high level of assurance, but rather provides limited assurance that nothing has come to their attention that causes them to believe that the subject matter is not fairly presented.

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