In the course of an audit, greater assurance with regard to financial statements is achieved through extensive auditing procedures.
Inter alia, auditing procedures cover:
- risk assessment
- preparation of an action plan
- inspection of assets
- obtaining assurance
- assessment of evidence obtained during engagement
If reasonable assurance has been obtained as a result of an audit, the auditor will prepare confirmation of the financial statements (e.g. “In our opinion, the attached financial statements present, in all material respects, fairly and …”).