Asked by: Laurea Anistratenkobusiness and finance mergers and acquisitions
Do you have to be independent to perform a review?
Furthermore, do you need to be independent for a review?
A review is narrower in scope than an audit. A review is useful when management is seeking greater confidence in financial statements for the purpose of evaluating results and making key organization decisions. A CPA must be independent to perform a review engagement.
Thereof, what is the difference between an audit and an independent review?
An audit requires an independent auditing team comprised of qualified auditors to review financial statements via various in-depth procedures. It therefore carries higher authority than a review. As an audit requires far more detailed investigation into a business's financial statements, it is a more expensive option.
A review requires some testing of the information, while a compilation almost entirely relies on the presented information. Understanding of internal control. The auditor only tests the internal controls of the client in an audit; no testing is conducted for a review or a compilation. Work performed.