How do assurance reports typically serve compared to statutory audits?

Assurance reports are designed to provide independent evaluations of a specific subject matter, often addressing the needs of internal stakeholders, such as management. Unlike statutory audits that are primarily focused on the financial statements and are required by law for public disclosure, assurance reports may assess various aspects of an organization's operations, compliance, or performance, depending on the terms of the engagement.

One of the key aspects of assurance reports is that they can be customized to the specific requirements and needs of the entity being assessed. This tailored approach allows the report to focus on areas that are most relevant to management's decision-making processes, thereby providing valuable insights that can be used to enhance organizational performance and governance.

In contrast, assurance reports are not mandatory in the same way that statutory audits are, as they may be commissioned voluntarily by the organization for internal purposes. They can also cover more diverse topics than just compliance, thus broadening their scope beyond just regulatory adherence. Additionally, while certain assurance reports may be shared with stakeholders, such as investors or regulators, they are not typically filed publicly like statutory audit reports, which are required to be disclosed in accordance with legal frameworks.