What’s the difference?
| Audit | Review | |
|---|---|---|
Level of assurance | A reasonable or high level of assurance about whether the financial statements, as a whole, are free from material errors or fraud. Reasonable or high assurance is not absolute assurance. | Limited assurance about whether the financial statements as a whole are free from material errors or fraud. Limited assurance is less than reasonable assurance. |
Report provided | Independent Auditor’s Report Opinion is expressed in a positive form, e.g. “The financial statements are free from material misstatement”. | Independent Review Report
Conclusion is expressed in a negative form, e.g. “Nothing has come to our attention that causes us to believe that the financial statements are not free from material misstatement”. |
Nature of procedures | Procedures normally involve detailed tests of accounting records using techniques such as inspection, observation, confirmation, recalculation and re-performance, as well as inquiry and analytical review. | Procedures are primarily based on inquiry and analytical review. |