What is the Difference between an Audit, Review and Compilation?

Описание: The 3 primary financial statement engagements will include a Compilation, a Review and an Audit. Take the Balance Sheet Quiz Next ➡️    • Accounting Quiz on the Balance Sheet - 10 ...  

Audit vs Review vs Compilation

If a bank, lender or investor is asking you for third party validation of your company's financial statements, this video will help you understand the different type of financial statement engagements. Also if you are studying for the CPA exam or taking Intermediate Accounting, this summary can help you understand the differences between a Compilation, Review and Audit.

Criteria in Video:
✅Level of Assurance Provided
✅Procedures Performed during Engagement
✅Accountant's and Auditor's Report
✅Relative Cost
✅Length of Engagement

The level of assurance each engagement provides:
1️⃣Compilation = no assurance
2️⃣Review = limited assurance
3️⃣Audit = reasonable assurance

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Disclosure Disclaimer: The information in this video is provided for general education purposes only and may not reflect changes in federal or state laws. This video is not intended to provide advice. Please consult with a professional advisor about your facts and circumstances.

Chapters
0:00 Introduction
1:00 Compilation
3:34 Review
7:15 Audit