What assurance type and level is provided during reviews of financial information?

The correct answer is that reviews of financial information provide limited assurance at a moderate level. This type of assurance indicates that the auditor has conducted a review that involves inquiries and analytical procedures, rather than a full audit, which would require a higher level of assurance.

In a review, the objective is to provide a moderate level of assurance to users of the financial information that it is free from material misstatement. The auditor does not perform extensive testing of transactions or balances as in an audit. Instead, reviews focus on analytical procedures and inquiries with management, which means that while the auditor can suggest that the financial statements appear to be reasonable, they cannot say with the same degree of certainty as in an audit.

This limited assurance is distinctly different from high assurance offered in audits, where the auditor provides reasonable assurance, and involves more rigorous testing to confirm the accuracy and completeness of financial statements. Therefore, the essence of a review signifies a lower level of assurance compared to a full audit, which further supports the selection of limited assurance, moderate level as the appropriate type and level provided during financial information reviews.