Assurance

In order to provide third parties (financial institutions, government, etc.) with a certain level of assurance with respect to financial information prepared by management a public accountant will apply procedures and issue a report based upon the work performed.

Audit

A public accountant will apply audit procedures with the purpose of reaching a conclusion regarding the management prepared financial statements.  An audit provides a high level of assurance, though not absolute.

Review

In a review engagement there is a reduced level of assurance provided. A review engagement is designed so that a public accountant may provide a moderate level of assurance that the management prepared financial statements are in accordance with generally accepted accounting principles and free from material error. The procedures employed are not as comprehensive as an audit.