Question

While _____ refers specifically to expressing an opinion on financial statements and ______ refers to expressing an opinion on an expanded set of financial information beyond financial statements or a specified element of financial statement information.

Answer 1

An audit refers to expressing an opinion on financial statements, while a review refers to expressing an opinion on an expanded set of financial information beyond financial statements.

Step-by-step explanation:

In the context of financial reporting, expressing an opinion on financial statements is known as an audit. An audit is conducted by an independent professional who examines the financial statements of a company and expresses an opinion on whether they present a true and fair view of the company's financial position. On the other hand, expressing an opinion on an expanded set of financial information beyond financial statements or a specified element of financial statement information is known as a review. A review is less extensive than an audit and provides limited assurance that the financial information is free from material misstatements.