What it is
An engagement review looks at selected engagements and the reports on them, usually reviews and compilations. The reviewer reads the financial statements, the reports and the working papers. Small firms often fail on small things: a report that does not match the engagement letter, a missing disclosure of independence, or notes inconsistent with the omission paragraph.
This checklist covers scheduling, the engagement list and file readiness for compilation, review and preparation engagements. It follows the Peer Review Standards at a high level and is not an AICPA product, and not endorsed by the AICPA.
When to use it
- Before the engagement review due date.
- To self-review a sample of compilation and review files.
- After changing staff or software that affects SSARS engagements.
What’s inside
- Scheduling and administration
- Engagement list and selection
- Compilation, review and preparation file checks
- Firm information the reviewer may request
- Summary counts
Standard cited
This template follows AICPA Peer Review Standards / AR-C 60-90. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Does an engagement review test our quality management system?
Not directly. An engagement review does not give the reviewer a basis for expressing assurance on the firm’s system. The reviewer reads the financial statements, the reports and the documentation for selected engagements. The firm still needs a system of quality management under SQMS No. 1.
How are engagements selected?
The reviewer selects engagements from your list based on the levels of service you perform, covering the partners who sign reports, with at least two engagements in total. Preparation engagements are selected only in limited cases. Your administering entity can give you the rules that apply to your review year.
Should we fix files before the review?
Do not alter files in a way that hides deficiencies from the reviewer. Document any change made after the report date, and fix process issues for future engagements.
Related templates
- Peer Review Readiness Checklist
- Compilation Engagement Checklist (AR-C 80)
- Review Engagement Checklist (AR-C 60 and AR-C 90)
- Peer Review Preparation Checklist: System Review
Last updated 11/05/2026. All free templates.