1.5 Types of assurance reports

Assurance reports are documents issued by professional accountants or auditors that provide an independent assessment or opinion on the reliability of specific information or subject matter. The types of assurance reports can vary depending on the nature of the engagement and the requirements of the stakeholders. Here are some common types of assurance reports:

1. Audit Reports: Audit reports are issued as a result of financial statement audits. They provide an independent opinion on the fairness of the financial statements in accordance with the applicable accounting standards or generally accepted accounting principles (GAAP). Audit reports typically include an opinion on whether the financial statements present a true and fair view and whether they have been prepared in accordance with the relevant framework.
2. Review Reports: Review reports are issued as a result of review engagements. In a review engagement, the accountant performs limited procedures to obtain a reasonable basis for expressing limited assurance on the financial statements. The review report includes a conclusion as to whether anything has come to the accountant’s attention that would indicate that the financial statements are not in accordance with the applicable financial reporting framework.
3. Examination Reports: Examination reports are issued in examination engagements where the accountant performs procedures to obtain a moderate level of assurance on the subject matter. These engagements are often performed for specific non-financial information or compliance matters. The examination report provides an opinion on the subject matter, stating whether it is presented fairly and in accordance with the criteria specified.
4. Agreed-Upon Procedures (AUP) Reports: AUP reports are issued in agreed-upon procedures engagements. In these engagements, the accountant performs specific procedures that are agreed upon by the client and any other involved parties. The report presents the factual findings resulting from the procedures performed, without providing an overall conclusion or opinion.
5. Assurance Reports on Internal Controls: These reports are issued as a result of engagements where the accountant assesses and provides an opinion on the effectiveness of an entity’s internal control systems. The report evaluates the design and operating effectiveness of controls and identifies any deficiencies or weaknesses observed.
6. Other Special Purpose Reports: There are various other types of assurance reports that can be issued based on specific engagements and stakeholder requirements. These can include reports on sustainability performance, compliance with specific regulations or standards, due diligence reports, and forensic investigation reports.