What are the different types of audit?

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James Hadfield

James Hadfield – Audit Partner

Where a full statutory audit is not required, companies may consider other types of assurance work over the financial position. An assurance review can provide both internal and external confidence over the financial statements and depending on the scope of the work, could cover the full financial position, or just a key area of concern.

There are several factors to consider when deciding on whether or not to take the annual preparation of accounts one step further and to have an assurance review, especially if and full statutory audit has been performed previously.


What is an ‘Assurance Review’?

An Assurance Review will consider and review all aspects of the financial data and unlike an audit will not result in an opinion on the accounts, but it will provide additional level of confidence over the financial statements. A report is appended to the financial statements which will highlight to user that a review has been undertaken. An assurance review is therefore less intensive and more flexible than the statutory audit you may be used to.

The Assurance review will give confidence to the users of the accounts, both internally and also externally. So a potential lender / supplier / buyer / employee could be encouraged to see an assurance review report on financial statements.

What are ‘Agreed Upon Procedures’?

Agreed Upon Procedures will only look at specific areas, as directed by the management / owners / client and could focus on the few areas where you may have got most value from a statutory audit in the past. This allows far greater flexibility when considering risk areas and areas of concern. Each year a different focus area could be considered for review.


More about Menzies audit and compliance services

As well as meeting your statutory reporting obligations, Menzies’ audit and compliance services are the proactive way to reduce risk and drive forward your business strategy. Our pragmatic, hands-on approach helps you improve your business performance – by challenging assumptions and resolving commercial issues that could be holding your business back.

Our audit and compliance team will help you to:

  • Add value to your business by using the audit as a basis to identify and resolve commercial issues and to improve your business processes.
  • Use the understanding and insight gained from the audit as a basis for helping you develop strategies to drive your business forward.
  • Reduce risk and improve your organisational performance by challenging existing assumptions and practices.
  • Secure peace of mind from knowing your statutory obligations are met, accounts are true and potential problems have been identified early on.

Contact Menzies Audit & Compliance team

To speak to a partner or for more information about the audit and compliance services we offer please contact one of the Menzies LLP offices or complete our contact from below.