What procedure should be performed as part of review engagements?

In the context of review engagements, the primary focus is on providing a moderate level of assurance rather than the high level of assurance associated with an audit. Analytical procedures are fundamental in this type of engagement because they involve evaluating financial information through analysis of plausible relationships among both financial and non-financial data.

During a review, practitioners use these procedures to identify any significant variations from expected amounts, trends, or relationships that may indicate potential discrepancies or issues within the financial statements. This process helps the reviewer gather sufficient evidence for drawing conclusions about the financial statements' overall presentation and whether they are free from material misstatement.

In contrast to analytical procedures, detailed testing of transactions is more typical of audit procedures that require a higher assurance level, while forecast evaluation and substantial compliance testing do not align with the primary procedures necessary for review engagements. Thus, analytical procedures are the most appropriate and effective means of assessment in this context, making them the correct choice.