Why have a voluntary audit?

13 Oct 2021

For companies exempt from preparing an audit, there are various alternatives for reporting on assurance of financial statements. John Selwood ACA explains the different options and how these compare to an audit

Reliable business activities, internal processes and information are important to owners, management, and other stakeholders. Assurance from a third party can give these stakeholders more confidence and helps reliable decision making.

What is an assurance engagement?

The International Auditing and Assurance Standards Board (IAASB) developed the Amended International Framework for Assurance Engagements. This identifies five elements of an assurance engagement:

• a three-party relationship;

• an agreed and appropriate subject matter;

• suitable criteria;

• sufficient and appropriate evidence; and

• a conclusion or opinion, expressed in a written report.

Assurance on non-financial information