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 highest level of assurance is provided by an audit engagement, followed by a review engagement. Compilation engagements provide the least amount of assurance. Bookkeeping is not an assurance engagement, and thus does not provide any level of assurance. Therefore, the correct ranking from highest to lowest level of assurance is audit, review, compilation, and bookkeeping. Therefore, option A is the correct answer.

Four Different Engagements That the Auditor Can Complete Are Compilation