What level of assurance does a review provide compared to an audit?

A review provides limited assurance, which is distinct from the higher level of assurance offered by an audit. In the context of financial statements, a review involves performing analytical procedures and making inquiries of management, rather than obtaining sufficient evidence through direct tests of transactions or balances as an audit does. This means that while the CPA or tax specialist conducting the review is looking for any significant issues that could affect the financial statements, they are not expressing an opinion on the overall fairness of the financial statements.

The limited assurance indicates that nothing has come to the reviewer’s attention that would cause them to believe that the financial statements are materially misstated, but it does not guarantee that the statements are entirely free from error. This is a significant contrast to an audit, which provides reasonable assurance through comprehensive procedures and usually culminates in an opinion on the fairness of the financial statements.

The other options mischaracterize the nature and scope of a review: it is not without assurance, not high-level assurance, and certainly not providing comprehensive assurance, as that implies a thorough examination similar to that of an audit.