Which of the following statements is true regarding review and audit services?
A) A review requires more substantive evidence than an audit.
B) An audit requires less evidence related to internal control than a review.
C) A review requires less evidence than an audit.
D) None of the above statements is true.

Question

Quizplus · Accepted Answer

A review requires less evidence than an audit. Reviews are less extensive than audits and involve primarily analysis and inquiry, whereas an audit requires examination of financial statements and internal controls, and more extensive testing of accounts and transactions.

Which of the Following Statements Is True Regarding Review and Audit