Limited Assurance Engagement
There are two types of Assurance Engagement in the UK; Limited Assurance Engagement is the lower-level form.
Limited Assurance Engagements do not provide a full audit and report, they provide a more specific report for a specific purpose.
For a Limited Assurance Engagement, auditors have to state their duties and responsibilities to the client, to begin with. From here, they will collect sufficient evidence that is appropriate for the audit. As this is a limited assurance, the level of evidence required will be significantly lower than that of reasonable assurance.
Based on the evidence collected, the auditor will reach a conclusion regarding the subject matter. The subject matter must be plausible in the circumstances based on the evidence and conclusion of the auditor. These conclusions reached will form the basis of the auditors’ opinions in the report as well. Although opinions are worded negatively, this does not reflect poorly on the business.
How Does This Benefit My Business?
A Limited Assurance Engagement will provide a business with low-level assurance. Although this may be related to a specific subject matter, it will be focused on the necessary targets of the business. These reports give credibility to the business reporting and help facilitate the running and management of the business.
They also provide a closer look into the company’s financial situation and business as a whole. In a Reasonable Assurance Engagement, a wider look and audit can be performed; however, when a business needs an audit for something specific, a Limited Assurance Engagement is sufficient to give confidence in the information presented to third parties. Third Parties in this context may include a bank for a loan, for example.
Accountants as Your Auditors
If you are in need of a Limited Assurance Engagement, an accountant can help you. An accountant can be the person employed to perform the audit for you. As highly trained professionals, they are able to look at the business from a professional viewpoint and assess the financial positions and business as a while as they currently stand, providing a detailed report and opinions to conclude.
The 6 Wands Team
If you do not have an accountant who can perform this task for you, why not contact 6 Wands Accounting today? Our team are qualified and trained to provide Limited Assurance Engagements for your business, providing a professional and expert opinion, detailed report and giving assurance to third parties you are looking towards.
Contact us online below or give us a call to find out more about our expertise and how we can help provide this service for you.