2.4 Types of assurance engagements (Audit, Review assignments)

Assurance engagements refer to professional services performed by an independent auditor or assurance provider with the objective of providing assurance or a level of confidence to the intended users of financial or non-financial information. There are several types of assurance engagements, including:

• Audits: An audit is a type of assurance engagement that provides the highest level of assurance.
• Review assignments: A review is a type of assurance engagement that provides a lower level of assurance compared to an audit.
• Internal control audits: An internal control audit is a type of assurance engagement that focuses on evaluating the effectiveness of an entity’s internal control system.
• Compliance audits: A compliance audit is a type of assurance engagement that focuses on evaluating an entity’s compliance with specific laws, regulations, or contractual requirements.
• Performance audits: A performance audit is a type of assurance engagement that focuses on evaluating an entity’s performance in a specific area, such as the efficiency of operations or the effectiveness of programs.