Audit: An Audit is a compilation of inquiries concerning financial statements and related matters such as: record keeping practices, accounting policies, business activities and decisions made by the managing body. The auditor will assess and evaluate the overall financial statement presentation as well as assessing methods and practices used in accounting. Additionally, trends and activities may be monitored and tested in the search for error or fraud. Ultimately the pursuit is to attain reasonable assurance that the financial statements of the client entity are free of material misstatement.

Review: A review performed in accordance with the statements on standards for accounting and review services; (SSARSs). During a review, the CPA inquires and performs analytical procedures to identify unusual items or trends that may need further explanation by management. The review is designed to determine whether the financial statements are accurate or could withstand the further scrutiny of a full audit. The CPA does not need to gather or corroborate evidence, but does assess the accounting principle used by management. An overall evaluation of the financial statement presentation is determined. The primary difference between a review and an audit is that in an audit, the auditor verifies management’s amounts and disclosures with evidence provided by third parties. In a review, the CPA ordinarily does not verify management’s amounts and disclosures with outside evidence unless the CPA believes that the amounts and disclosures are materially inaccurate.

Compilation: The compilation includes observing the accounting principles and practices common to the client's industry. A general understanding of the client's transactions and how they are recorded is obtained. During compilation the CPA takes a common sense look at the client's accounting system and evaluates what changes, if any, are needed for a proper adjustment to the accounting records. Additionally the CPA is obliged to assist financial statements for appropriate form and to make sure they are free from obvious material errors.

A-133: A-133 Audit or OMB A-133 Audit, is a rigorous, organization-wide audit or examination of an entity that expends $750,000 or more of Federal assistance (commonly known as Federal funds, Federal grants, or Federal awards) received for its operations.