In September, the International Auditing and Assurance Standards Board (IAASB) released International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements.
The revised standard is intended to help meet increasing market demand for assurance services other than audits for small- and medium-sized entities (SMEs) and users of their financial information. It provides a globally accepted benchmark for undertaking review engagements, promotes better clarity for users about the nature of a review and the level of assurance it provides, and should fill an emerging need of changing markets. The revised standard is effective for reviews of financial statements for periods ending on or after 31 December, 2013.
To help support the IFAC member bodies, in particular, those who operate in small- and medium-sized practices (SMPs), the IFAC’s Small and Medium Practices (SMP) Committee issued an article on review engagements that discusses key features of the standard.