# Review engagement letter under AR-C 90: limited assurance, in writing [Home](/) / [Engagement letter templates](/templates/engagement-letters) / Review of financial statements By [Arthur Teboul](/authors/arthur-teboul), Founder, DokuTrak. Published 2026-10-30, updated 2026-10-30. > **In brief:** A review engagement letter is the signed agreement for a review of financial statements, in which the CPA obtains limited assurance mainly through inquiry and analytical procedures. The SSARS require the letter to state that a review is substantially less in scope than an audit and that no opinion will be expressed. ## The template: Review engagement letter **Not advice.** This page is general information, not tax, legal or HR advice. Rules change: check the cited source and ask your own professional before you rely on it. Last reviewed October 25, 2026. Fill in each [placeholder], keep the inquiry list that fits the client, and delete the bookkeeping clause if your firm does not keep the books. Have counsel review the template once before first use. ```text [Firm name] [Firm address] [Date] [Board chair or CEO name] [Company legal name] [Company address] Re: Review of financial statements as of and for [period] Dear [Board chair or CEO name], Services and objective You have engaged [Firm name] to review the financial statements of [Company legal name], comprising the balance sheet as of [date] and the related statements of income, changes in equity and cash flows for the [period] then ended, and the notes. Our objective is to obtain limited assurance, as a basis for reporting whether we are aware of any material modifications that should be made for the statements to be in accordance with [framework]. What a review involves Our procedures will consist mainly of inquiries of company personnel and analytical procedures applied to financial data. We will cover, among other areas, revenue and cutoff, related parties, significant estimates, debt and covenants, litigation, events after the period end and going concern. Please make [names] available during [dates]. Limitations A review is substantially less in scope than an audit, and we will not express an opinion on the financial statements. We will not test internal control, confirm balances, observe inventory or perform other audit procedures. A review is not designed to detect errors, fraud or illegal acts, but we will tell you of any that come to our attention. Independence We are independent of [Company legal name] and will remain so throughout the engagement. If our independence becomes impaired, we will tell you at once and withdraw from the review engagement. Responsibilities of management Management is responsible for preparing and fairly presenting the financial statements in accordance with [framework], including all informative disclosures appropriate for that framework; for selecting the framework; for internal control relevant to statements free from material misstatement, whether due to fraud or error; for preventing and detecting fraud; for compliance with applicable laws and regulations; for the accuracy and completeness of the records, documents and explanations it provides, including significant judgments; and for giving us access to all information relevant to the statements, any additional information we request, and unrestricted access to the people from whom we need to make inquiries. Records to provide By [date], you will send: the trial balance; prior-period statements; monthly trial balances and the budget; bank reconciliations; receivable and payable agings; the inventory listing; the fixed asset rollforward; loan agreements and covenant calculations. Late or incomplete items will move our report date and may increase our fee. Management representations At the end of our review, [CEO name] and [CFO name] will sign a letter confirming the representations made to us during the review. We will not release our report without it. Statement preparation and bookkeeping (optional) We will also [prepare the financial statements and notes / record adjusting entries]. You designate [name, title], who has suitable skill, knowledge and experience, to oversee these services, evaluate their results and accept responsibility for them. Supplementary information (optional) The [supplementary schedules] will be [reviewed and covered by our report / compiled and labelled as such]. We will not express any assurance beyond what our report states. Our review report We expect to issue a written review report on the statements. Circumstances may arise in which the report differs from its expected form, and we may withdraw if we are unable to complete the review. Lenders and sureties You may provide the reviewed statements to [lender or surety name]. Any document that contains the statements and says we reviewed them will include our review report. Working papers and disputes Our working papers are the property of [Firm name] and will be kept for [retention period]. Peer reviewers and regulators may access them under professional standards. Any dispute about our services will first go to non-binding mediation in [city, state]. This letter is governed by the laws of [state]. Fees Our fee for the review is [amount], invoiced [schedule] and payable within [number] days. Time spent on late, incomplete or corrected records is billed at [rates]. Agreement to these terms Please sign and return this letter. Its terms will apply to reviews of later periods unless either of us proposes a change in writing. Yours truly, [Firm name] [Accountant name], CPA Signature: ____________________ Date: __________ Agreed for [Company legal name]: [CEO name], [Title] Signature: ______________ Date: ________ ``` Download: [Word](https://dokutrak.com/downloads/pseo-v2/f2-engagement-letters/review.docx) · [PDF](https://dokutrak.com/downloads/pseo-v2/f2-engagement-letters/review.pdf) ## Limited assurance, said plainly **Limited assurance** is the level of comfort a review gives: the accountant reports whether anything came to their attention that suggests the statements need material changes to follow the framework. It is more than a compilation gives and much less than an audit. AR-C 90 makes the letter say that a review is substantially less in scope than an audit and carries no opinion ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). Clients often read “reviewed” as “checked”. The letter is where you fix that. Say what you will do, which is mostly asking questions and comparing numbers, and what you will not do, such as confirming balances or testing controls. Lenders and sureties read the same letter differently from the client. They want to know the review followed the standards and that the firm is independent. Keep the wording close to the standard, and avoid softer words such as “looked over” that a third party could read as more, or less, than a review. ## Independence: the line that separates review from compilation The accountant must be independent of the entity to perform a review ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). If independence is impaired, the review cannot go ahead as a review. A compilation is the usual fallback, since it can be issued with a disclosure that the firm is not independent ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). Bookkeeping or statement drafting for a review client is allowed only within the AICPA nonattest rules. Management must name a person with suitable skill to oversee that work, and the understanding must be in writing before the work starts ([AICPA Code of Professional Conduct, ET 1.295](https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf)). Put both the independence statement and the overseer’s name in the letter. ## The inquiries and analytics the client should prepare for A review is built on two kinds of work. **Inquiry** is asking management and staff questions and evaluating the answers. **Analytical procedures** are comparisons of the numbers with expectations, such as last year’s figures, the budget or industry ratios, with a follow-up question for every unexpected change. Tell the client in the letter which topics you will ask about and who should be available. The table is a starting list; adjust it to the client’s industry. | Area you will ask about | Who should answer | What to have ready | | --- | --- | --- | | Revenue recognition and cutoff | Controller or owner | Sales by month, large contracts, credit memos after period end | | Related parties | Owner | List of related entities and transactions with them | | Significant estimates | Controller | Bad debt, inventory reserve and accrual workpapers | | Debt and covenants | CFO | Loan agreements and covenant calculations | | Litigation and claims | Owner or counsel | Letters from lawyers, claims received | | Events after period end | Owner | Board minutes, new debt, major losses up to the report date | | Going concern | Owner and CFO | Cash forecast and plans if losses continue | ## The AR-C 90 terms and the representation letter The required terms track the compilation list, with two changes. The limitations paragraph must carry the “substantially less in scope than an audit” statement, and the report described is a review report ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). The accountant or firm and management, or those charged with governance, sign it. Management’s side of the letter has three items beyond the general SSARS list. AR-C 90 asks management to accept responsibility for preparing and fairly presenting the statements with all informative disclosures ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). Management also agrees to sign a representation letter at the end, and to include the review report in any document that says the statements were reviewed ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). A **representation letter** is the letter management signs at the end of the review, confirming in writing what it told the accountant. Written representations are review evidence under AR-C 90, and the accountant requests them from members of management with the right responsibilities and knowledge ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). Name in the letter who will sign them, such as the CEO and CFO, so it is not a surprise at the end. Records still matter. The IRS describes supporting documents as items such as sales slips, paid bills, invoices, receipts, deposit slips and canceled checks ([IRS Publication 583, Starting a Business and Keeping Records](https://www.irs.gov/publications/p583)). Ask for the ones your analytics will lean on, with dates, and say that late items move the report date. ## Questions people ask ### What is the difference between a compilation and a review engagement letter? A review letter promises limited assurance and states that the accountant is independent; a compilation letter promises no assurance and does not require independence ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). The review letter also warns that a review is substantially less in scope than an audit. ### What procedures does a review involve? Mainly inquiries of management and analytical procedures, such as comparing the current numbers with prior periods and budgets ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). A review does not test internal control, confirm balances with third parties or observe inventory. ### Who signs the review engagement letter? The accountant or the firm, and management or those charged with governance, as appropriate ([AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective)). Management later signs a separate representation letter at the end of the review. ### Can a review client also use the firm for bookkeeping? Yes, if the firm stays independent under the AICPA nonattest rules: management assumes its responsibilities and names a qualified overseer, agreed in writing before the work starts ([AICPA Code of Professional Conduct, ET 1.295](https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf)). ## Sources - [AICPA SSARSs, AR-C 90 Review of Financial Statements](https://www.aicpa-cima.com/resources/download/aicpa-ssarss-currently-effective): AR-C 90 requires independence and withdrawal if it is impaired (.10); AR-C 60 lists management’s access duties; AR-C 90 lists the review letter terms including the substantially-less-in-scope statement, requires signatures, and treats written representations as review evidence. - [AICPA Code of Professional Conduct, ET 1.295](https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf): Nonattest services keep independence only when management assumes responsibility, names an overseer and the understanding is documented in writing. - [IRS Publication 583, Starting a Business and Keeping Records](https://www.irs.gov/publications/p583): Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips and canceled checks. ## More on this topic - [Compilation engagement letter](/templates/engagement-letters/compilation) - [Audit engagement letter template](/templates/engagement-letters/audit) - [AICPA engagement letter templates](/templates/engagement-letters/aicpa-templates) - [Engagement letter templates by service](/templates/engagement-letters) ## About the author Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. [Arthur Teboul](/authors/arthur-teboul). How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? [Contact us](/contact). ## Ask once. DokuTrak does the chasing. - Your client uploads from one link, with no account and no password. - Reminders go out on a schedule, by default 2, 5, 10 and 14 days after the request, until the file arrives. - You accept every file or mark it for re-upload, and your client gets the note by email. The AI never accepts a file. 14-day free trial, no card. Add one only to keep going. [Request these documents with DokuTrak](https://app.dokutrak.com/sign-up?docs=bank-statement%2Cmortgage-statement%2Cinvoice%2Ccontract)