Which financial review method is considered the most thorough?

An audit is considered the most thorough financial review method because it involves a comprehensive examination of an organization’s financial statements and the underlying records, systems, and processes. Auditors conduct detailed testing of transactions and internal controls, seeking to provide reasonable assurance that the financial statements are free from material misstatement. This process often includes verifying the accuracy of the financial data, assessing the reliability of internal controls, and ensuring compliance with accounting standards.

In contrast, a review provides a limited assurance based on analytical procedures and inquiries, which is less extensive than the procedures performed in an audit. A compilation involves assembling financial statements based on information provided by management and does not include any verification or assurance, making it the least thorough of these methods. An interim report, while useful for providing in-progress financial information, does not encompass the thoroughness of an audit.