Which of the following represents the order from the least assurance to the most assurance provided for the types of services provided?
A)Review, compilation, audit.
B)Compilation, review, audit.
C)Audit, review, compilation.
D)Audit, compilation, review.

Question

Quizplus · Accepted Answer

The order of services from least assurance to most assurance is:
1. Compilation – involves the preparation of financial statements based on client-provided information without providing any form of assurance.
2. Review – involves performing analytical procedures and making inquiries to verify the accuracy of financial statements, but provides less assurance than an audit.
3. Audit – involves obtaining reasonable assurance that financial statements are free from material misstatement by examining evidence supporting the amounts and disclosures in the financial statements. 
Therefore, option B, which lists the services in the order Compilation, Review, and Audit, correctly represents the increasing levels of assurance provided by the types of services.

Which of the Following Represents the Order from the Least