Document background
A Review Engagement Letter is essential when a company requires limited assurance on its financial statements rather than a full audit. This document, governed by Hong Kong's regulatory framework and professional standards, particularly HKSRE 2400, establishes the professional relationship between the accounting firm and the client. It includes critical information about the scope of work, responsibilities, limitations of a review engagement, timing, fees, and deliverables. The letter is commonly used for interim financial statements, subsidiary companies, or when full audit assurance isn't required by stakeholders or regulations. It serves as the primary contract document defining the terms of service and protecting both parties' interests while ensuring compliance with Hong Kong's professional standards and regulatory requirements.
