An audit gives reasonable assurance that financial statements are free from material misstatement. A limited review gives a lower, "limited" level of assurance, built mainly on enquiries and analytical procedures, and it is reported as a conclusion that nothing has come to the auditor's attention. Use an audit when the law or a lender needs an opinion. Use a review when a lighter, cheaper and faster check is enough.
Last reviewed: 17 October 2026. Facts checked. We ran searches on SRE 2410 and on the audit and review assurance levels. The ICAI-hosted copy of SRE 2410 returned a certificate error when we tried to open it, so we relied on search-result summaries of it and on a ClearTax summary, and we did not read the full text. We did not open SEBI's listing rules, so we do not state which entities must have a limited review or how often.
The difference in one table
| Audit | Limited review | |
|---|---|---|
| Level of assurance | Reasonable | Limited |
| Main work | Risk assessment, tests of controls, substantive testing, confirmations | Mainly enquiries and analytical procedures |
| Form of the report | An opinion (for example, true and fair view) | A conclusion in negative form |
| Typical wording | "In our opinion..." | "Nothing has come to our attention that causes us to believe..." |
| Cost and time | Higher | Lower |
| Standards | Standards on Auditing (SAs) | SRE 2410 for an interim review by the entity's auditor |
The search summaries we read are consistent on the core point. A review does not give the assurance an audit gives, because the work relies mainly on enquiry and analytical procedures. For the wider picture on assurance levels see reasonable vs limited assurance.
What "limited assurance" means in practice
Think of it as a lower bar of evidence. In an audit, the auditor gathers enough evidence to reduce the risk of a wrong opinion to a low level. In a review, the evidence is lighter, so the auditor can only say that nothing has come to their attention suggesting the statements are not prepared in all material respects under the framework.
That wording is not a trick. It tells the reader exactly how far the work went. Readers who treat a review report as an audit opinion are misreading it.
What a review typically involves
For an interim review by the entity's auditor under SRE 2410, the summaries we read describe these elements:
- Agreeing the terms of engagement.
- Enquiries of management and others, and analytical procedures on the interim figures.
- Evaluating misstatements found.
- Obtaining management representations.
- Communicating with management or those charged with governance.
- Reporting the conclusion.
The practitioner summary also says the auditor must follow the ethical rules that apply to the annual audit and maintain relevant quality controls. That fits with our own view: independence and quality systems do not get lighter because the assurance does. Our guide to SQM 1 and EQR covers firm-level quality.
When each is used
An audit is used when:
- A law requires an audited set of statements. See statutory audit explained.
- A bank or other lender requires audited accounts.
- Investors, regulators or the entity's own governance expect an opinion.
A review is used when:
- An interim period needs a check without a full audit. An example is half-yearly or quarterly figures, where the entity's auditor performs the review.
- The stakeholders want some assurance but not an opinion, and the law does not demand more.
- A client wants a check before an audit begins, to find issues early.
We did not confirm which listed entities must obtain a limited review, or how often. That is a matter for the SEBI listing rules and the entity's own obligations. Check those rules before you quote requirements to a client.
What is neither an audit nor a review
Do not confuse a review with an agreed-upon procedures engagement. In an agreed-upon procedures engagement, you perform procedures the parties have agreed and report the factual findings, with no assurance conclusion at all. Our guide to agreed-upon procedures under SRS 4400 explains that line.
A "review" that is done as a favour, with no engagement letter and no clear procedures, is the riskiest of the three. Someone will treat it as comfort on the accounts.
How to choose
Ask five questions.
- Who needs it, and why? If the answer is "the law" or "the lender", find the exact requirement.
- Who will rely on it? The wider the audience, the more an opinion is worth.
- What can go wrong if it is wrong? Higher stakes, more assurance.
- How much time and budget exist? A review fits where an audit cannot.
- Will the reader understand the difference? Say it in the engagement letter.
An engagement letter template can help you set out the scope, the level of assurance and the form of the report. The audit engagement acceptance checklist is useful before you accept either.
Setting expectations with the client
Clients often hear "review" and think "audit lite, same thing". Fix that at the start:
- Write that the review gives limited assurance and no opinion.
- Say what the report will say, using the standard wording.
- State who may use it.
- Explain that the review may not find fraud or errors that an audit would.
Our audit time estimator can help you size the hours behind either engagement.
Frequently Asked Questions
What is a limited review in simple words?
A check on financial information that relies mainly on asking questions and analysing the numbers. It gives a lower level of assurance than an audit.
Is a limited review the same as an audit?
No. An audit gives reasonable assurance and ends in an opinion. A limited review gives limited assurance and ends in a negative-form conclusion.
Who performs a limited review of interim results?
Under SRE 2410, the entity's own auditor performs the review of its interim financial information. Check the rules that apply to your client for any additional requirements.
Does a limited review report say the accounts are correct?
No. It says nothing has come to the auditor's attention to suggest the statements are not prepared properly. That is a different statement from an opinion.
Can a limited review replace a statutory audit?
Not where the law requires an audit. A review cannot meet an audit requirement.
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