Agreed

Audit Review Compilation Upon

Procedures
What is an.. Highest level of Provides less Involves gaining a Standard a
financial statement assurance to the general company
service a CPA can reader of the FS understanding of outlines when
provide. Enhances because the CPA the business an it hires an
the degree of does not perform presenting FS in external party
confidence that many audit the accepted to perform an
intended users, such procedures. format audit specific
as lenders or test
investors, can place in
the FS
Objective Enable the auditor to Enable the auditor to For the accountant To carry out
express opinion on state whether, to use accounting audit
the entity’s financial anything has come to expertise, to procedures
statement the auditor’s attention collect,classify and agreed on
that causes the auditor summarize with the client
to believe that the financial and any
financial statements information. appropriate
are not prepared in all third parties
material respects in identified in
accordance with an the report
identified financial
reporting framework

Level of High/Reasonable Moderate/limited None none

assurance assurance assurance

Type of Positive Negative Assurance Identification of Description of

Report Assurance(opinion) financial procedures
information performed
compiled and factual
findings

Basic  Risk  In quiry  Assemble  As

Procedures assessment  Analytical FS based agreed
procedures procedures on the
 Test of controls (does not client’s data
 Substantive include
test assessing
(performing control risk, test
analytical of records and
procedures,test responses to
ing requires by
 documentation obtaining
supporting corroborating
account evidence
balances,
observing
physical
inventory
count,confirmin
g accounts
receivable and
other accounts
with a third
party)

Independence Required Required Not required Not required

requirement

Material Material but not The report should Disclose the

misstatement pervasive- qualified describe those matters nature of the
opinion that impair a fair misstatement in
Material and presentation of the FS separate
pervasive- adverse including a paragraph of the
opinion quantification of report although
possible effect their effects do not
have to be
quantified

Scope Material but not  Express  Withdraw

limitation pervasive- qualified qualification of from the
opinion negative engagemen
Material and assurance or t
pervasive- disclaimer  Not provide any
of opinion assurance