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The Accounting Review Engagement Letter is a crucial document used in Indonesian business practice when a company requires professional review services for their financial statements. It is less extensive than an audit engagement but provides limited assurance on financial information. The document must comply with Indonesian regulations, particularly Law No. 5 of 2011 on Public Accountants and ISRE 2400, while adhering to local professional standards and ethical requirements. This engagement letter serves as the primary agreement between the accounting firm and the client, detailing the scope of services, responsibilities, limitations, and deliverables. It's typically used when full audit assurance isn't required by law or stakeholders, but the company seeks professional oversight of their financial statements.

1. Letterhead and Date: Firm's official letterhead including name, address, contact details, and professional registrations, along with the date of the letter

2. Recipient Details: Client's name, position, company name, and address

3. Engagement Purpose: Clear statement of the purpose of the engagement and the financial statements to be reviewed

4. Scope of Review: Detailed description of what a review engagement entails, its limitations compared to an audit, and the specific periods to be reviewed

5. Professional Standards: Reference to ISRE 2400 and other applicable professional standards that will be followed

6. Management Responsibilities: Clear outline of management's responsibilities regarding financial statements and information provision

7. Practitioner's Responsibilities: Description of the accounting firm's responsibilities, including the nature of procedures to be performed

8. Independence and Ethics Statement: Declaration of adherence to independence requirements and ethical principles

9. Timeline and Deliverables: Expected timeframe for the review and format of deliverables

10. Fees and Payment Terms: Professional fees, payment schedule, and any additional costs

11. Signature Blocks: Space for both parties to sign and date the engagement letter