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The Financial Review Engagement Agreement is a crucial document used when a company requires professional review of its financial statements that provides a lower level of assurance than an audit. This agreement, governed by South African law, establishes the professional relationship between the reviewing firm and the client, outlining specific responsibilities, scope of work, and deliverables. It is particularly relevant for private companies, smaller entities, and organizations where a full audit is not required by law but stakeholders still need some level of professional assurance. The agreement must comply with South African regulatory requirements, including the Companies Act and professional standards set by the Independent Regulatory Board for Auditors (IRBA). It includes detailed provisions for the review process, quality control measures, confidentiality obligations, and limitation of liability.

1. Parties: Identification of the reviewing firm and the client entity, including their full legal names and registration details

2. Background: Context of the engagement and brief description of the client's business and review requirements

3. Definitions: Definitions of key terms used throughout the agreement, including technical accounting and review-specific terminology

4. Scope of Review Engagement: Detailed description of the review services to be provided, including the periods to be reviewed and the nature of the review procedures

5. Responsibilities of the Review Firm: Outline of the review firm's obligations, professional standards to be followed, and deliverables

6. Client's Responsibilities: Client's obligations including provision of information, representations, and access to records

7. Professional Standards and Quality Control: Reference to applicable professional standards, quality control procedures, and regulatory requirements

8. Timing and Deliverables: Timeframes for the review engagement and specification of reports and other deliverables

9. Fees and Payment Terms: Fee structure, payment schedule, and terms for additional services if required

10. Confidentiality: Provisions for handling confidential information and data protection requirements

11. Limitation of Liability: Limitations on the review firm's liability and professional indemnity provisions

12. Term and Termination: Duration of the agreement and conditions for termination

13. General Provisions: Standard legal clauses including governing law, notices, and dispute resolution