What do you need
to examine?

A statutory or voluntary audit under the applicable auditing standards. It aims to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. The independent auditor’s report expresses an opinion or explains why one cannot be expressed.

• The scope, reporting framework and timetable are set out in the engagement letter.
• For reporting to owners, banks and other intended users, subject to the relevant requirements.

Reasonable assurance, not an absolute guarantee.

A limited assurance engagement based mainly on enquiries and analytical procedures. The work is less extensive than an audit and the report provides a review conclusion.

• Suitability depends on legal requirements and the needs of the report’s users.
• The scope and reporting framework are established before work begins.

A review provides limited assurance, not an audit opinion.

Assessment of controls in specified processes, such as payments, purchasing and financial reporting. The agreed scope determines whether the work covers control design, implementation or operation.

• Identification of weaknesses and recommendations for improvement.
• Reporting tailored to management or those charged with governance.

Any required level of assurance is agreed separately.

Examination of specified transactions or activities against agreed criteria, such as contracts, funding conditions, regulations or legal requirements.

• Criteria and procedures are established before the engagement.
• For projects, organisations and activities with specific reporting requirements.

The engagement defines whether it provides assurance or reports findings only.

Audit of special-purpose financial statements, a single statement or specified elements, according to the request and applicable standards. Agreed-upon procedures are offered as a separate type of engagement.

• Intended users and the purpose of the report are established at the outset.
• For specific requests from banks, donors or other identified users.

Agreed-upon procedures report findings without an audit opinion or assurance conclusion.

Verification of subcontractor or implementing-partner expenditure and supporting records against contractual and project requirements.

• The terms of reference define the period, procedures and report format.
• For lead contractors, project managers and organisations with implementing partners.

Where agreed-upon procedures are requested, the report presents findings without providing assurance.

Analysis of suspected financial irregularities using the available records, transactions and data. The scope and intended use of the report are agreed before work begins.

• Reconstruction and analysis of transactions within the agreed scope.
• Evidence handling and confidentiality in accordance with legal and professional duties.

This engagement is distinct from a routine financial statement audit.