Audits - Reviews Compilations
Audits, reviews, and compilations are all professional services that provide assurance over a company’s financial statements. Audits provide the highest level of assurance, followed by reviews, and then compilations.Compilations are typically used for internal purposes only, while audits and reviews can be used to give third parties (such as lenders or investors) confidence in a company’s financial reviews and compilations can be conducted by CPAs or non-CPAs.
The main difference between an audit and a review is.
The main difference between an audit and a review is the amount of testing that is done on the financial statements. An audit involves a much more in-depth analysis, while a review is more limited in scope.
A compilation is the least assurance-providing service, as it simply involves putting together financial statements from information provided by the client. There is no testing or analysis done on the statements themselves.