Ellen has arranged a bank loan and the bank is asking for a review engagement, at a minimum. Ellen has only heard of an audit. She would like you to explain the difference between an audit and a review. In addition, she would like to see examples of the procedures that would be performed on the theatre's operating expenses in both cases. Appendix I SUMMARY OF OPERATIONS GT's 800-seat theatre offers, on average, 15 different shows each year, with 10 performances of each show. The average ticket price is $30 and the theatre is, on average, 60% full. GT pays the performers 30% of their performances' gross ticket revenues and performers do not receive any other remuneration from GT. GT currently sells refreshments during performances. About 65% of the patrons spend an average of $8 on refreshments, which cost GT an average of $2. The refreshments are served by two drama students, who are each paid $30 per show. There are no other incremental costs

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An audit and a review are both types of engagements conducted by a CPA firm to provide assurance about the financial statements of an organization The ... View the full answer