ISRE 2400 Review

An ISRE 2400 review is an assurance engagement in which an accountant reviews an entity’s financial statements through inquiries and analytical procedures, in accordance with ISRE 2400 (Revised). It provides limited assurance rather than the full opinion given in an audit.

No. An audit provides reasonable assurance through detailed testing and a positive opinion. A review provides limited assurance through inquiry and analytical procedures, ending in a negative conclusion that nothing has come to the practitioner’s attention to suggest a problem.

ISRE 2400 (Revised) became effective for reviews of historical financial statements for periods ending after 31 December 2013. It was issued by the International Auditing and Assurance Standards Board under the International Federation of Accountants, commonly known as IFAC.

No. If your company meets the audit exemption thresholds, a statutory audit isn’t required by law. Some companies choose an ISRE 2400 review anyway, so banks, shareholders or other stakeholders get independent assurance on the accounts.

From 6 April 2025, a company is generally exempt from a statutory audit if it meets two of three tests: turnover of £15 million or less, a balance sheet total of £7.5 million or less, and an average of 50 employees or fewer.

A practitioner builds an understanding of the entity, performs analytical procedures on the financial statements, and makes inquiries of management. Further testing only happens if something raises a genuine concern, and the standard also requires strict documentation and a clear reporting format in compliance with ISRE 2400.

An ISRE 2400 review can flag weaknesses or unusual items in financial statements, but it doesn’t offer the same fraud detection capability as a full audit. If fraud risk is a specific concern, an audit is usually the more appropriate engagement.

A review generally costs less than a full audit, since it needs fewer resources and less time to complete. The exact fee depends on the size and complexity of your business, so we always agree pricing before the engagement begins.

Not always. Businesses with straightforward structures and material items in their accounts are usually well suited to a review. Entities with complex operations or unusual transactions are often better served by a full audit, so we’ll advise honestly if that applies to your business.

An ISRE 2400 review must be performed by a qualified practitioner, engaged in accordance with the standard and all relevant laws and ethical requirements. The practitioner must not be the entity’s existing auditor for that period.