[jjm1181]

the financial staments are still considered audited…correct? And the biggest difference is that the auditors will analyze processes and procedures, but not actually watch the procedures and ask for documents as verification?

(I’m taking AUD in January and have never taken an audit class so I don’t know this)

B 79
A 75
R 78
F 85

[mla1169]

No the financial statements are not considered audited. Audited means the CPA is giving reasonable assurance that the financial statements are without material misstatement.

A review means the CPA did some analytical procedures and inquiries and is giving limited assurance in that nothing obvious jumps out at them but they haven't tested controls or done any tests of balances. So a review is basically the same as the initial few steps of an audit but then stops dead in its tracks.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[katiekanton]

Ditto to what mla1169 said, but also, no substantive procedures in a review.

AUD - 88
FAR - 90
REG - 85
BEC - 88

[jjm1181]

The reason I ask is because my company has been required to have audits completed over the past few years per the SBA. We now are out of the specific SBA program and no longer need to provide audited financial statements. To save some bucks, we're looking at having a review done instead.

B 79
A 75
R 78
F 85

[Anonymous]

Okay, I took 1 audit class and I'm still unclear as to what substantive testing is. Test of details, test of balances, test of transactions — these are all related to substantive testing, yea?

Does it generally just refer to any testing that has to deal with verifying numbers?

[Anonymous]

@CannotPassAgain : for substantive testing, think of SUBSTANTIATING financial statement numbers. What these tests do is to check that the numbers on the financial statements are free of material errors. Example: Interest revenue received from long term bonds held to maturity. Check face value x interest rate = good estimate. (analytical procedure used as a substantive test) Then check how much was received in payments. (actual substantive test)

[Author]

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