Which accounting service provides the highest level of assurance? O Compilation

Question

Which accounting service provides the highest level of assurance? O Compilation O Review O Audit O All three provide the same level of assurance QUESTION 2 Which accounting service provides the lowest level of CPA assurance? O Audit O Compilation 0 Review O All three provide the same level of assurance QUESTION 3 A compilation report MUST provide the CPA's opinion as to whether the financial statements are fairly presented O True O False QUESTION 4 In order to perform a compilation, the CPA must be "independent" from the çlient O True False

Explanation / Answer

Audit provides reasonable assurance that financial statements are free from material misstatement.

Reviews: It provides lower of assurance that financial statement are free from material misstatement.

Compilation: It provides no assurance that financial statement is free from material misstatement.

Ans 1(3) : Audit

Ans 2(2): Compilation

Ans 3(False) Under Compilation CPA report not necessary provides assurance regarding fairly presented financial statements.

Ans 4) False The CPA must be independent from the client during Review.

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