Australian Dental Council (ADC) Practice Test

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A practitioner performs a review of historical financial statements under the applicable review standard. Compared with an audit, what level of assurance is ordinarily provided?

Absolute assurance supported by exhaustive testing Limited assurance supported mainly by inquiry and analytical procedures Reasonable assurance expressed through a positive-form opinion No assurance because a review is a related service

Correct Answer:

Limited assurance supported mainly by inquiry and analytical procedures

Explanation:

A review is an assurance engagement that provides limited assurance, which is lower than the reasonable assurance obtained in an audit. The conclusion is ordinarily expressed in a negative form after procedures centered on inquiry and analytical review.

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