Document background
An Accounting Review Engagement Letter is a crucial document used when a business requires a professional review of its financial statements that provides limited assurance, as distinct from a full audit. This engagement letter, tailored for the Canadian market and complying with provincial regulations and CSRE 2400, establishes the professional relationship between the accounting firm and the client. It is typically used when stakeholders, lenders, or regulations require some level of external assurance on financial statements, but a full audit is not necessary or mandated. The letter details the scope of work, limitations of a review engagement, respective responsibilities, timeline, and fee structure, while ensuring compliance with Canadian professional standards and privacy laws. It serves as the foundational document for the review engagement process and helps manage expectations between all parties involved.
