Final answer:
A review engagement is different from an audit; it offers a moderate level of assurance and involves less rigorous procedures, focusing on consistency rather than providing a high level of assurance like an audit.
Step-by-step explanation:
A review engagement is not virtually identical to an audit of a client's financial statements. An audit involves an extensive examination of the financial records and requires the auditor to provide a high level of assurance that the financial statements are free of material misstatement.
By contrast, a review engagement offers a moderate level of assurance and involves the accountant conducting analytical procedures and inquiries to ascertain whether the financial statements are consistent with generally accepted accounting principles. While both review engagements and audits are assurance services, the scope of a review is significantly less than that of an audit. In a review, the accountant is not required to obtain an understanding of internal control or to assess fraud risk, nor to test accounting records through inspection, observation, or external confirmation as they would in an audit.