Auditing - What are Reviews

The video tutorial explains the differences between a financial statement audit and a review service provided by auditors. It highlights that a review offers limited assurance compared to an audit, as it involves less test work, primarily through analytical procedures and inquiry. The tutorial also discusses the types of clients who might need a review, such as those seeking loans from banks, where a full audit is not necessary but some level of assurance is required.

What is the main difference between a review and a financial statement audit?

What type of assurance does an auditor provide in a review?

What kind of test work is primarily used in a review?

Who might need a review instead of a full audit?

Why might a client seek a review when applying for a loan?