Hi, I am writing a memo for Auditing Class. I enclosed the screenshot for requirement and my memo. Could you please help me to revise it?

Requirement: The partner requested you to assist her with the proposal and to write a memo outlining the major differences between a "review" and an "audit".She indicated that you must ensure that your memo addresses the level of assurance between the two types of reports.

My answer:

This memo is in response to explain the major differences between an "audit" and a "review"

of the financial statement. The memo will first describe the audit and review and then discuss the differences between them. After clarifying the difference, the memo will address the level of assurance between the two types of reports.

What Is an Audit?

An audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial accounting framework. The audit procedures are required in accordance with the auditor's findings and the auditing standards. If the auditor believes that the statements are not fairly presented or is unable to conclude because of insufficient evidence, the auditor has the responsibility of notifying users through the auditor's report.

The audit is the highest level of CPA assurance service. It is appropriate and often required when the company is seeking complex or high levels of financing and credit.

What Is a Review?

A review is not designed to obtain reasonable assurance that the financial report is free from material misstatement. It has a narrow scope than an audit. A review does not contemplate obtaining an understanding of the business's internal control; assessing fraud risk; testing accounting records through inspection, observation, outside confirmation or the examination of source documents or other procedures ordinarily performed in an audit.

The review is the base level of CPA assurance services. It is appropriated as a business grows and is seeking more extensive and more complex levels of financing and credit.

The Level of Assurance Between Review and Audit

The level of assurance is determined by whether the financial statements are in accordance with the financial reporting framework. The review is intended to provide a basic level of assurance on the accuracy of financial statements. On the contrary, an audit provides creditors, investors and other outside parties with a high level of comfort on the accuracy of financial statements.