ISRE 2400 (Revised), Engagements to Review ... - BDO International

(ii)PROPOSED INTERNATIONAL STANDARD ON REVIEW ENGAGEMENTS 2400 (REVISED)The financial statements adequately disclose the significant accountingpolicies selected and applied;(iii) The accounting policies selected and applied are consistent with the applicablefinancial reporting framework and are appropriate;(iv) Accounting estimates made by management appear reasonable;(v)The information presented in the financial statements appears relevant,reliable, comparable, and understandable; and(vi) The financial statements provide adequate disclosures to enable the intendedusers to understand the effects of material transactions and events on theinformation conveyed in the financial statements. (Ref: Para. A106–A109)67. The practitioner shall consider the impact of:(a)(b)Unadjusted misstatements identified during the review, and in the previous year’sreview of the entity’s financial statements, on the financial statements as a whole;andQualitative aspects of the entity’s accounting practices, including indicators ofpossible bias in management’s judgments. (Ref: Para. A110–A111)68. If the financial statements are prepared using a fair presentation framework, thepractitioner shall consider whether anything has come to the practitioner’s attention thatcauses the practitioner to believe that the financial statements do not present fairly, in allmaterial respects, or do not give a true and fair view, as appropriate, in accordance withthe applicable fair presentation framework. The practitioner’s consideration shall include:(a)(b)The overall presentation, structure and content of the financial statements inaccordance with the applicable framework; andWhether the financial statements, including the related notes, represent theunderlying transactions and events in a manner that achieves fair presentation orgives a true and fair view, as appropriate, in context of the financial statements as awhole.69. If the practitioner is not able to obtain sufficient appropriate evidence to form aconclusion on the financial statements, the practitioner shall: (Ref: Para. A112–A116)(a)(b)Discuss with management and those charged with governance, as appropriate, theeffects such limitations have on the scope of the review; andDetermine the effects of such limitations on the practitioner’s report.Form of theConclusion28