Planning an Independent Review: Setting the Foundation for Quality

17 Sept

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Independent reviews often do not get the spotlight they deserve. They are seen as the “lighter cousin” of an audit, sometimes dismissed as a box-ticking exercise. But anyone who has sat across from a client and tried to explain a limited assurance conclusion knows the truth: a well-planned independent review can make or break the credibility of financial statements. And the secret ingredient is planning.

Why Planning Matters

Think of planning an independent review like packing for a long trip. You do not need to bring everything you would take on an audit holiday, with massive checklists and endless testing. But if you forget the essentials, you will find yourself scrambling halfway through. ISRE 2400 (Revised), the international standard governing independent reviews, makes this clear: planning sets the foundation for quality, efficiency, and ultimately, trust in your conclusion.

A properly planned review helps you:

Focus on risk, because not all line items are created equal. Revenue recognition, related parties, and going concern issues deserve sharper attention.
Work smarter, not harder. Limited assurance means targeted procedures, not exhaustive detail.
Keep quality front and centre. Professional scepticism and independence are non-negotiable, and planning makes them easier to uphold.

What ISRE 2400 Says

The standard does not leave us guessing. It sets out specific requirements for how practitioners should approach the planning stage:

Understand the entity and its environment: You do not need the depth of knowledge required in an audit, but you must know enough to spot where misstatements might arise.
Set materiality: Decide upfront what matters and what does not. This will guide every inquiry and analytical procedure.
Design the review procedures: Choose inquiries and analytics that address the identified risks. Nothing should be scattergun, everything should tie back to the risks that matter most.
Document the plan: It is not just admin. A clear plan demonstrates compliance with the standard and provides a roadmap for the team.

Above all, the standard reminds us that limited assurance still requires professional scepticism. Your conclusion, “nothing has come to our attention…”, carries weight, and planning is how you make sure it is justified.

Making It Practical

So how do you bring this to life in your practice? Here is a quick roadmap:

Engagement letter first. Set the rules of the game.
Know the client. Understand the industry, systems, unusual transactions, and pressure points.
Set materiality. Decide on thresholds and stick to them.
Pinpoint risk areas. Think revenue, estimates, and related parties.
Match procedures to risks. Use inquiries, ratio analysis, and expectation comparisons.
Assign roles and timelines. Keep the file moving.
Document it all. Future you (and your reviewer) will thank you.

Why It Matters for CIBA Members

Independent reviews are a cornerstone of many small and medium-sized practices. They are a cost-effective way to serve clients who do not need or cannot afford a full audit but still want assurance. In South Africa’s regulatory landscape, they are becoming increasingly important.

By planning properly, you are not only complying with ISRE 2400. You are building client trust, protecting your practice, and demonstrating professional excellence. In short, you are showing the value of what it means to be a CIBA-accredited professional: practical, ethical, and client-centred.

Final thought: Do not see planning as a chore. See it as your chance to design a review that is efficient, focused, and high-quality. The more intentional you are upfront, the more confident you will be when signing off with those crucial words: “nothing has come to our attention…”

Access the CIBA CPD here on: Plan First, Regret Nothing: Mastering the Planning Stage of Independent Reviews

Plan First, Regret Nothing: Mastering the Planning Stage of Independent Reviews
Independent review assurance is coming whether your clients are ready or not. The difference between a smooth engagement and a risky one lies in the planning.

In this 2-hour CPD session (3 units), I show you how to take ISRE 2400 (Revised) off the page and into practice. You’ll learn how to:
✅ Identify high-risk areas before you start
✅ Set materiality with confidence (and defend it)
✅ Design targeted analytical procedures that actually deliver results
✅ Document your planning clearly so you’re never caught off guard

🎥 Recording available now
💻 Format: Online (watch anytime)
⏱️ Duration: 2 hours | CPD: 3 units
💰 Free for CIBA members on Channel 2
💰 R345 VAT incl. for non-members and other channels

👉 Watch the recording here

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