Review of financial statements is an engagement in which auditor’s main objective is to obtain limited assurance, primarily by performing inquiry and analytical procedures, about whether the financial statements as a whole are free from material misstatement.

Auditor expresses a conclusion on whether anything has come to auditor’s attention that causes him to believe the financial statements are not prepared, in all material respects, in accordance with an applicable financial reporting standards (e.g. IFRS).

The reviews represent limited assurance engagement and are conducted in accordance with International Standards on Review Engagements (ISRE).

A review engagement is an engagement that can be offered as an alternative to the audit and intended to provide a basic level of assurance that financial statements are free from material misstatement.  A review engagement, by its nature, includes the key elements of an audit. Thus, the assessment of client business principal risks is ensured. 

Since a review is substantially limited in scope than an audit, there is a cost-effective solution for the businesses requiring a lesser level of assurance.