An audit is a reasonable assurance engagement, whereas a review is a limited assurance engagement. Both types of assurance engagements provide…

Difference between Reasonable Assurance Engagement and Limited Assurance Engagement: Reasonable assurance engagement Limited assurance engagement Reasonable assurance engagement provides high level of assurance. Limited assurance engagement provides lower level of assurance than reasonable assurance engagement. It performs elaborate and extensive procedures to obtain sufficient appropriate evidence. It performs fewer procedures as compared to reasonable assurance engagement. It draws reasonable conclusions on the basis of sufficient appropriate evidence. It involves obtaining sufficient appropriate evidence to draw limited conclusions. Example of reasonable assurance engagement is an audit engagement, Audit of financial statements. Example of limited assurance engagement is review engagement, Review of financial statements.