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Why do you think the external auditor wanted to review report when they were there to...

Why do you think the external auditor wanted to review report when they were there to audit our external financial statements

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Answer #1

The main difference vis-a-vis audit and a review is that conducting an audit requires the auditor to obtain independent confirmation or verification of the financial information examined. The auditor does not perform indepth testing as they do in the audit. They review for material issues and deviations from GAAP. A review provides some assurance but does not independently validate the transaction.

Therefore External auditor's review of report and audit of statement are two different thing and both are essential in cases.

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