Home Pvt. Ltd., a company involved in turnkey infrastructure projects, is in discussions for a strategic joint venture with a foreign company. As…

A review engagement under SRE 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, provides limited assurance, which is lower in scope than the reasonable assurance obtained in an audit. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review may bring significant matters affecting the interim financial information to the auditor's attention, but it does not provide all the evidence that would be required in an audit. Overview of distinctive areas between Audit and Review Audit Review Audit is a type of reasonable assurance engagement providing reasonable level of assurance. Review is a type of limited assurance engagement providing a lower level of assurance than reasonable assurance engagement. It performs elaborate and extensive procedures including tests of controls and substantive procedures. It performs fewer procedures primarily focusing on inquiry and analytical procedures. It draws reasonable conclusions on the basis of sufficient appropriate evidence. It draws limited conclusions on the basis of sufficient appropriate evidence. It provides an assurance opinion. The language of assurance opinion is positively worded. It provides an assurance conclusion. The language of assurance conclusion is negatively worded.