[knewman31]

Good Morning,

Can someone please help me with assurance levels provided? I think I have it correct for Audits (positive), Compilations (none), Review (limited), Comfort letters (negative) and agreed on procedures (none) but what is the assurance level provided for a compliance audit? Since it is considered an audit is it positive as well? Any help is greatly appreciated.

Thanks!

REG 79
AUD 79
BEC 79
FAR 80

[jackaroe]

Good question. I don't think that there are audits conducted for solely for compliance – other than compliance with GAAP/applicable financial framework. AUC-C 805 speaks to audits of single F/S and Specific Elements, Accounts, or Items of F/S. Examinations (positive) and Agree-upon-Procedures (report on the findings) are performed w/r/t stand-alone compliance engagements. A review (limited/negative) can be performed on compliance of a requirement (i.e., bank wants OK on a loan) if the reviewer performed an audit on the F/S. But as far as I have seen – and anyone please respond if they have seen otherwise – there is no such thing as a ‘compliance' audit.

[jackaroe]

Good question. I don't think that there are audits conducted for solely for compliance – other than compliance with GAAP/applicable financial framework. AUC-C 805 speaks to audits of single F/S and Specific Elements, Accounts, or Items of F/S. Examinations (positive) and Agree-upon-Procedures (report on the findings) are performed w/r/t stand-alone compliance engagements. A review (limited/negative) can be performed on compliance of a requirement (i.e., bank wants OK on a loan) if the reviewer performed an audit on the F/S. But as far as I have seen – and anyone please respond if they have seen otherwise – there is no such thing as a ‘compliance' audit.

[Author]

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