Which of the following services provides the lowest level of assurance on a financial statement?
A) review
B) audit
C) Neither service provides assurance on financial statements.
D) Each service provides the same level of assurance on financial statements.

Question

Quizplus · Accepted Answer

A review provides a lower level of assurance than an audit on a financial statement. During a review, the CPA performs analytical procedures and inquiries to provide limited assurance that no material modifications need to be made to the financial statements. An audit, on the other hand, provides a higher level of assurance and involves more extensive testing of the financial statements.

Which of the Following Services Provides the Lowest Level of Assurance