$4\mathrm{.}21$ Compilation, review or audit

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You have been approached by a client who is not sure of the requirements with regard to financial reporting. Your client understands that there are compilations, reviews and audits but is not aware of the differences between them.

Required

Prepare notes for a meeting with your client that discuss the differences between a compilation. a review and an audit. Identify the different levels of assurance that will be given and what form that opinion will take. You should also give brief notes about the kind of procedures that would be involved in each engagement.