An independent auditor’s report on your financial statements is the highest level of assurance that you can receive on your financial statements from a public accountant. An audit involves evaluation of information presented on a test basis to determine if the information presented is reasonable. These services are sometimes required by shareholders, banks or other creditors.
A review engagement offers users with a lower level of assurance than an audit engagement with regards to the reliability of financial statements as the scope of the work is reduced. The work performed is limited to analytical procedures, discussion and management inquiry to determine plausibility of information presented. They are typically appropriate for owner managed businesses and are sometimes required by banks or other creditors.