Update No. 124 - Hong Kong Institute of Certified Public Accountants
Update No. 124 - Hong Kong Institute of Certified Public Accountants
Update No. 124 - Hong Kong Institute of Certified Public Accountants
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Introduction<br />
Scope <strong>of</strong> this HKSRE<br />
ENGAGEMENTS TO REVIEW HISTORICAL FINANCIAL STATEMENTS<br />
1. This <strong>Hong</strong> <strong>Kong</strong> Standard on Review Engagements (HKSRE) deals with: (Ref: Para. A1)<br />
(a) The practitioner's responsibilities when engaged to perform a review <strong>of</strong> historical<br />
financial statements, when the practitioner is not the auditor <strong>of</strong> the entity's financial<br />
statements; and<br />
(b) The form and content <strong>of</strong> the practitioner's report on the financial statements.<br />
2. This HKSRE does not address a review <strong>of</strong> an entity's financial statements or interim financial<br />
information performed by a practitioner who is the independent auditor <strong>of</strong> the entity's financial<br />
statements. (Ref: Para. A2)<br />
3. This HKSRE is to be applied, adapted as necessary, to reviews <strong>of</strong> other historical financial<br />
information. Limited assurance engagements other than reviews <strong>of</strong> historical financial<br />
information are performed under HKSAE 3000. 1<br />
Relationship with HKSQC 1 2<br />
4. Quality control systems, policies and procedures are the responsibility <strong>of</strong> the firm. HKSQC 1<br />
applies to firms <strong>of</strong> pr<strong>of</strong>essional accountants in respect <strong>of</strong> a firm's engagements to review<br />
financial statements. 3 The provisions <strong>of</strong> this HKSRE regarding quality control at the level <strong>of</strong><br />
individual review engagements are premised on the basis that the firm is subject to HKSQC 1<br />
or requirements that are at least as demanding. (Ref: Para. A3–A5)<br />
The Engagement to Review Historical Financial Statements<br />
5. The review <strong>of</strong> historical financial statements is a limited assurance engagement, as described<br />
in the <strong>Hong</strong> <strong>Kong</strong> Framework for Assurance Engagements (the Assurance Framework). 4 (Ref:<br />
Para. A6–A7)<br />
6. In a review <strong>of</strong> financial statements, the practitioner expresses a conclusion that is designed to<br />
enhance the degree <strong>of</strong> confidence <strong>of</strong> intended users regarding the preparation <strong>of</strong> an entity's<br />
financial statements in accordance with an applicable financial reporting framework. The<br />
practitioner's conclusion is based on the practitioner obtaining limited assurance. The<br />
practitioner's report includes a description <strong>of</strong> the nature <strong>of</strong> a review engagement as context<br />
for the readers <strong>of</strong> the report to be able to understand the conclusion.<br />
7. The practitioner performs primarily inquiry and analytical procedures to obtain sufficient<br />
appropriate evidence as the basis for a conclusion on the financial statements as a whole,<br />
expressed in accordance with the requirements <strong>of</strong> this HKSRE.<br />
1<br />
<strong>Hong</strong> <strong>Kong</strong> Standard on Assurance Engagements (HKSAE) 3000, Assurance Engagements Other than Audits or Reviews<br />
<strong>of</strong> Historical Financial Information<br />
2<br />
<strong>Hong</strong> <strong>Kong</strong> Standard on Quality Control (HKSQC) 1, Quality Control for Firms that Perform Audits and Reviews <strong>of</strong><br />
Financial Statements, and Other Assurance and Related Services Engagements<br />
3<br />
HKSQC 1, paragraph 4<br />
4 Assurance Framework, paragraphs 7 and 11<br />
© Copyright 5 HKSRE 2400 (Revised)