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1.2 Audits and audit related services

Audits Audit related services

Nature of service Audit of financial Review Agreed upon
statements procedures

Level of Reasonable but not Limited assurance No assurance
assurance 100% assurance
provided

Report provided Positive assurance Negative Factual findings of
on assertions assurance on procedures
assertions

Professional International International International
guidance Standards on Standards on Standards on
Auditing Review Related Services
Engagements

1.3 Levels of assurance

Assurance engagements can be performed to provide reasonable or limited
assurance.

Reasonable assurance

 The objective of a reasonable assurance engagement is to obtain sufficient
appropriate evidence to conclude that the subject matter conforms in all
material respects with identified suitable criteria.

 The accountant expresses their conclusion in a positive form, giving an opinion
on whether the subject matter is free from material misstatement, e.g. statutory
audit.

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