What's the difference between an annual review and annual report?

[Anonymous]

I can't find anything on Google about this?

[rfcmvp]

Public accounting firms perform work on a company's financial statements. An annual report is audited by the public accounting firm while the annual review is just reviewed. An audit offers higher assurance to users of the financial statements than a review does. An audit of a company's statements typically involves a lot of tests of details as well as analytics (i.e. trend analyses, year over year type of stuff). A review would simply be a lot of inquiry with company employees and assessing whether their statements are reasonable and some analytics. Basically a lot more work is done on an annual report to verify the information in it versus a review. The public accounting firm's opinion on those statements will reflect that.

Hope this helps!

[Anonymous]

Homework question...? nice just cut and past rfc answer...hope its right...