What is the difference between an audit and a review?
A review made by a CPA “performs inquiry and analytical procedures to provide a reasonable basis for stating that he/she is not aware of any material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles.” A review enables the CPA to provide the company and other financial statement users with limited assurance that material changes to the financial statements are not necessary for them to conform to generally accepted accounting principles. An audit “performs a study and evaluation of internal accounting control as a basis for reliance thereon in determining the extent, nature, and timing of audit tests. Obtains corroborating evidential matter through inspection, observation, confirmation, and other necessary audit procedures to support an opinion on the financial statements.” An audit allows the CPA to give the company and other financial statement users a high level of assurance that the financial stat
