Audit or review ?

Audit or Review?

 

What is Review?

Review is one type of assurance giving engagement, which is in volume smaller than the regular audit and because of that provides lower confidence that the financial information audited by an auditor is in accordance with established requirements. Purpose of Review is to provide reasonable assurance to financial information user that such significant misstatements are not detected during the Review.

Compulsory Audit and Review criteria in Estonia

FOR THE REPORTING PERIODS STARTS ON January 1, 2017 AND LATER THESE CRITERIA SHOULD BE APPLIED : 

Criteria
If two of three more than
If one of three more than
If two of three more than
If one of three more than
Revenue
EUR 4 million
EUR 12 million
EUR 1,6 million
EUR 4,8 million
Assets total
EUR 2 million 
EUR 6 million
EUR 0,8 million
EUR 2,4 million
Number of employees
50
180
24
72
Audit or Review ?
AUDIT
REVIEW
In addition, the audit is mandatory for every joint-stock company with more than two shareholders, public company, accounting entity of state, local government, legal person in public law, foundations and political parties who get financial support from the state budget.

Review can also be carried out for financial information prepared for the purposes of consolidation in case such information will be submitted by foreign subsidiaries and their local accounting framework differs from the parent company (i.e. from Estonian GAAP or IFRS) and the group auditor decided  that this information may be reviewed instead of the auditing.

Larger corporate groups and listed companies may also carry out reviews of interim report in accordance to the applicable rules and regulations.

Auditor's reports about the results of audit and Review

  • The result of audit will be a “positive opinion”, i.e whether audit results confirm or not confirm that the financial statements present financial information is in accordance with the stated requirements.
  • The result of review will be expressed in the form of “negative opinion” – based on the results of the review nothing come to the attention of the auditors that causes them to believe that the financial statements are not in compliance with stated requirements 
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