Question

Two types of attestation services provided by CPA firms ate audits and reviews. Discuss the similarities and differences between these two types of attestation services. Which type provides the most assurance?

Answer 1

Two types of attestation services provided are review and audit of the historical financial statements. +

Similarity:

• Both meet financial statement users need
• Both require evidence and follow of accounting as well as auditing standards while performing the duty

Differences:

• The CPA provides a lower level of assurance for reviews of financial statements compared to the high level for audits, therefore less evidence is needed.
• Review can be provided by a CPA firm at a much lower fee than an audit

Since audit is more regerious, requires more evidence, time and efforts it proivdes more assurance than review.

Hope this helps.