Sample Review Checklist — Review Engagement Client: ___________________________________ Balance Sheet Date: ________________ Instructions This form should be completed as a guide for reviewing a review engagement. Any item answered "No" should be explained in the "Comments" column or in an attached memorandum. Action/Decision Based on my review, I am satisfied that: 1. 2. 3. 4. 5. We considered whether the firm was independent. We established an understanding with the client, regarding the services to be performed, and included a copy of the engagement letter in the engagement documentation. If the engagement was originally intended to be an audit, we documented the appropriateness of the decision to step down. We acquired the necessary knowledge and understanding of: a. The industry in which the client operates, including the accounting principles and practices generally used in the industry sufficient to assist us in determining the specific, nature, timing and extent of review procedures to be performed. b. The client’s business including a general understanding of the client’s organization; its operating characteristics; and the nature of its assets, liabilities, revenues, and expenses. c. The accounting principles and practices used by the client in measuring, recognizing, recording, and disclosing all significant amounts and disclosures in the financial statements. Based on a. Our understanding of the industry, b. Our knowledge of the client, and c. Our awareness of the risk that we may unknowingly fail to modify our review report on financial statements that are materially misstated, we designed and performed analytical procedures and made inquiries and performed other procedures, as appropriate, to accumulate review evidence in obtaining limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework. Yes No Comments 6. 7. 8. 9. 10. 11. 12. We focused our analytical procedures and inquiries in those areas where we believed there is an increased risk of misstatements. As part of our analytical procedures, we investigated fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount by inquiring of management and performing other procedures as necessary in the circumstances. We inquired the following of members of management who have responsibility for financial and accounting matters: a. Whether the financial statements have been prepared in conformity with the applicable financial reporting framework b. The entity’s accounting principles and practices and the methods followed in applying them and the entity’s procedures for recording, classifying, and summarizing transactions and accumulating information for disclosure in the financial statements c. Unusual or complex situations that may have an effect on the financial statements d. Significant transactions occurring or recognized near the end of the reporting period e. The status of uncorrected misstatements identified during the previous engagement f. Questions that arose in the course of applying the review procedures g. Events subsequent to the date of the financial statements that could have a material effect on the financial statements h. Their knowledge of any fraud or suspected fraud affecting the entity involving management or others where the fraud could have a material effect on the financial statements i. Significant journal entries and other adjustments j. Communications from regulatory agencies We inquired about actions taken at meetings of stockholders, the board of directors, committees of the board of directors, or comparable meetings that may affect the financial statements. We read the financial statements to consider, on the basis of information coming to our attention, whether the financial statements appear to conform with the applicable financial reporting framework. We obtained reports from other accountants, if any, who have been engaged to audit or review the financial statements of significant components of the reporting entity, its subsidiaries, and other investees. If there is any indication that information supplied by the entity was incorrect, incomplete, or otherwise unsatisfactory, we requested that management consider the effect of these matters on the financial statements and communicate the results of its consideration to us. We considered the results communicated to us by management and the effect, if any, on our review report. We performed any additional procedures we deemed necessary to obtain limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. If the financial statements contain a departure from the applicable financial reporting framework that is material to the financial statements, we considered whether modification of the standard report is adequate to disclose the departure. If we concluded that modification of the standard report is appropriate, we disclosed the departure in a separate paragraph of the report, including the effects of the departure on the financial statements, if such effects have been determined by management or are known as the result of our procedures. If we believe that modification of the standard report is not adequate to indicate the deficiencies in the financial statements as a whole, we withdrew from the engagement and provided no further services with respect to those financial statements. We obtained a management representation letter. If supplementary information accompanies the financial statements, we modified the report to indicate the degree of responsibility, if any, we are taking with respect to such information. We included a reference to the report on each page of the financial statements and supplementary information. We documented any significant unusual matters that we considered during the performance of the review procedures, including their disposition. All required forms have been completed. All questions, exceptions, or notes, if any, posed during the work have been followed up and resolved, and review notes and "to do" lists have been removed from the engagement documentation. The review report is not dated earlier than the date on which we accumulated review evidence sufficient to provide a reasonable basis for concluding that we have obtained limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework. I approve issuance of the review report. Completed by: _________________________________ Date: ____________________ More information on this topic is included in the AICPA Management of an Accounting Practice Handbook which is also available electronically in the AICPA Online Professional Library as well as in additional AICPA practice management publications. .