An audit is a reasonable level of assurance in the form of an affirmative report whereas review engagements are designed for entities that do not require audit opinion but still require some level of assurance on their financial statements.
The following points are some of the differences between audit and review:
1.A review can be understood as an official assessment of the books, so as to identify whether changes are to be implemented if required. Whereas, an audit implies an independent critical examination of the books of the entity, so as to give the opinion/judgement on the basis of evidence or facts.
2.An audit performed by an auditor provides high but not absolute assurance that the books to be audited are free from any material misstatement. On the other hand, a review undertaken by an auditor, provides a moderate level of assurance, that the information so reviewed, is free from any material misstatement.
3.In the audit, the opinion of the auditor is given as positive assurance assertion in an audit report. Conversely, in a review the auditor’s opinion is expressed as negative assurance assertion in the report provided.
4.When it comes to cost, the review is an expensive process as compared to the compilation, whereas, the audit is more expensive than a review.
To conclude, audit is more critical and systematic process as compared to a review. For any assistance on either, reach out to IDM Professional Corporation CPA
