Document background
A Review Engagement Letter is essential documentation required before commencing a limited assurance engagement in South Africa. It serves as the formal agreement between an independent reviewer or audit firm and their client, establishing the framework for the review engagement. This document is particularly important in the South African context as it must comply with the Companies Act 71 of 2008, the Auditing Profession Act 26 of 2005, and International Standard on Review Engagements (ISRE) 2400. The letter outlines key aspects including scope, responsibilities, limitations of the review, timing, and fee arrangements. It's typically used when full audit assurance isn't required or mandated, but stakeholders need some level of assurance on financial statements. The document must reflect South African regulatory requirements while adhering to international professional standards.
