Four different engagements that the auditor can complete are compilation,bookkeeping,audit,and review.Rank these engagements with respect to the level of assurance provided from highest assurance level to lowest assurance level.

Question

Quizplus · Accepted Answer

The audit provides the highest level of assurance as it involves obtaining and evaluating evidence to provide reasonable assurance that the financial statements are free from material misstatement. The review engagement provides a moderate level of assurance as it involves analytical procedures and inquiries to provide limited assurance that the financial statements are free from material misstatement. The compilation engagement provides the lowest level of assurance as it involves presenting financial information in the form of financial statements without any assurance regarding their accuracy. Bookkeeping does not involve providing any assurance and is simply the process of recording financial transactions. Therefore, the correct ranking would be audit, review, compilation, and bookkeeping.

Four Different Engagements That the Auditor Can Complete Are Compilation,bookkeeping,audit,and