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Two types of attestation services provided by CPA firms are audits and reviews. Discuss the similarities and differences between these two types of attestation services. Which type provides the least assurance?

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Final answer:

Audits and reviews are two types of attestation services provided by CPA firms with key differences. Audits provide the highest level of assurance, while reviews provide limited assurance. Reviews provide the least assurance.

Step-by-step explanation:

Both audits and reviews are types of attestation services provided by CPA firms, but they have some key differences.

Audit: Audits provide the highest level of assurance. They involve a comprehensive examination of an organization's financial statements and internal controls to provide an opinion on the accuracy and fairness of the financial information. Audits include detailed testing and verification of transactions and balances.

Reviews: Reviews provide limited assurance. They involve analytical procedures and inquiries to assess the plausibility of financial statements. Reviews are less detailed than audits and may not involve extensive testing. They provide a moderate level of confidence in the financial statements but do not provide as much assurance as audits.

The type of attestation service that provides the least assurance is a review.

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