Difference Between Audit And Review

Difference Between Audit And Review

The major dissimilarities or difference between audit and review can be highlighted as follows:

1. Introduction

Audit: Complete examination of company's books of accounts to prove the accuracy and validity of financial transactions.

Review: It is an analytical process of evaluating financial data to determine if any change is necessary or not.

2. Mandatory Or Not

Audit: Yes, it is mandatory for all business firms.

Review: No, it is not mandatory

3. Level Of Assurance

Audit: High

Review: Low

4. Knowledge Of Internal Control

Audit: Auditor should have the knowledge of internal control

Review: Knowledge of internal control is not necessary

5. Time And Effort

Audit: It requires more time and effort to perform the audit job.

Review: Review of accounts consumes less time and effort than audit

6. Cost

Audit: It requires high cost than review

Review: Less cost is required

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Difference Between Audit And Inspection

7. Concern With Financial Statement

Audit: Yes, it is concerned

Review: Not concerned

8. Systematic

Audit: It is more systematic than review

Review: It is less systematic than audit

Audit Vs Review (Comparison Table)

Basis	Audit	Review
Introduction	Checking of books of accounts in order to prove accuracy and validity of financial transactions	Analysis and evaluation of financial data to check if change is necessary or not
Mandatory	Yes	No
Assurance Level	High	Low
Internal Control Knowledge	Required	Not Required
Time/Effort	More	Less
Cost	High	Less
With Financial Statement	Concerned	Not Concerned
Systematic	More	Less

I hope this post is helpful to understand the difference between audit and review and to make comparison between them.