Audits are undertaken in accordance with the Financial Reporting Council’s International Standards of Auditing, which provide a specific framework of what audit work must be undertaken. Audits usually report against a specific accounting framework, such as UK GAAP. All companies that do not qualify as small, or for other exemptions from audit, are required to obtain an audit by the Companies Act.
Assurance reports are generally less prescriptive and are designed to provide assurance over a specific financial report or financial information. The work required for assurance reports is usually governed by guidance issued by the Institute of Chartered Accountants.