A review service engagement involving unaudited financial statements involves
A) More work than a compilation and an audit.
B) Less work than an audit but more work than a compilation.
C) Less work than a compilation but more work than an audit.
D) More work than an audit but less work than a compilation.

Question

Quizplus · Accepted Answer

A review service engagement involves obtaining limited assurance about the financial statements through inquiry and analytical procedures. This involves less work than an audit, which involves obtaining reasonable assurance by performing procedures to obtain audit evidence. However, it involves more work than a compilation, which only involves presenting financial information as received from the client. Therefore, option B is the best choice.

A Review Service Engagement Involving Unaudited Financial Statements Involves