What is assurance and non-assurance engagement?

An assurance engagement is any engagement that increases the level of confidence of third parties and management towards the outcome of an evaluation or measurement of a set of financial statements in accordance with the criteria of the financial reporting standards. This term usually refers to an independent audit.

A non-assurance engagement is therefore an engagement that doesn't impact on the level of confidence in the validity of the financial statements. For example, a compilation of financial information or consulting engagement, such as tax or management consulting.