A review provides limited assurance on the financial statements, whereas a compilation report provides no expressed assurance.

Question

Quizplus · Accepted Answer

A review report provides limited assurance as the auditor performs analytical procedures and makes inquiries of management, without the need for extensive testing of the financial statements. On the other hand, a compilation report provides no expressed assurance as the accountant only compiles and presents the financial information provided by the client without providing any opinion or assurance on the accuracy of the financial statements.

A Review Provides Limited Assurance on the Financial Statements, Whereas