Final answer:
A CPA provides limited assurance that no material modifications should be made to financial statements to conform with the relevant financial framework in a Review engagement. This is different from both a Compilation engagement, which provides no assurance, and an Audit engagement, which provides a high level of assurance. The correct option is D. Material engagement
Step-by-step explanation:
In the context of financial statement services provided by a Certified Public Accountant (CPA), the CPA provides limited assurance that no material modifications should be made for the financial statements to be in accordance with the applicable financial reporting framework in a Review engagement.
Unlike an audit, which provides a high level of assurance, a review is less comprehensive and involves primarily analytical procedures and inquiries.
A Compilation engagement involves assembling the financial statements based on information provided by management, without providing any assurance.
Meanwhile, an Audit engagement is where the CPA provides an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the financial reporting framework. Material engagement is not a recognized term in this context. The correct option is D. Material Engagement