Update No. 124 - Hong Kong Institute of Certified Public Accountants

Introduction
Scope of this HKSRE
ENGAGEMENTS TO REVIEW HISTORICAL FINANCIAL STATEMENTS
1. This Hong Kong Standard on Review Engagements (HKSRE) deals with: (Ref: Para. A1)
(a) The practitioner's responsibilities when engaged to perform a review of historical
financial statements, when the practitioner is not the auditor of the entity's financial
statements; and
(b) The form and content of the practitioner's report on the financial statements.
2. This HKSRE does not address a review of an entity's financial statements or interim financial
information performed by a practitioner who is the independent auditor of the entity's financial
statements. (Ref: Para. A2)
3. This HKSRE is to be applied, adapted as necessary, to reviews of other historical financial
information. Limited assurance engagements other than reviews of historical financial
information are performed under HKSAE 3000. 1
Relationship with HKSQC 1 2
4. Quality control systems, policies and procedures are the responsibility of the firm. HKSQC 1
applies to firms of professional accountants in respect of a firm's engagements to review
financial statements. 3 The provisions of this HKSRE regarding quality control at the level of
individual review engagements are premised on the basis that the firm is subject to HKSQC 1
or requirements that are at least as demanding. (Ref: Para. A3–A5)
The Engagement to Review Historical Financial Statements
5. The review of historical financial statements is a limited assurance engagement, as described
in the Hong Kong Framework for Assurance Engagements (the Assurance Framework). 4 (Ref:
Para. A6–A7)
6. In a review of financial statements, the practitioner expresses a conclusion that is designed to
enhance the degree of confidence of intended users regarding the preparation of an entity's
financial statements in accordance with an applicable financial reporting framework. The
practitioner's conclusion is based on the practitioner obtaining limited assurance. The
practitioner's report includes a description of the nature of a review engagement as context
for the readers of the report to be able to understand the conclusion.
7. The practitioner performs primarily inquiry and analytical procedures to obtain sufficient
appropriate evidence as the basis for a conclusion on the financial statements as a whole,
expressed in accordance with the requirements of this HKSRE.
1
Hong Kong Standard on Assurance Engagements (HKSAE) 3000, Assurance Engagements Other than Audits or Reviews
of Historical Financial Information
2
Hong Kong Standard on Quality Control (HKSQC) 1, Quality Control for Firms that Perform Audits and Reviews of
Financial Statements, and Other Assurance and Related Services Engagements
3
HKSQC 1, paragraph 4
4 Assurance Framework, paragraphs 7 and 11
© Copyright 5 HKSRE 2400 (Revised)