In terms of report circulation, how do statutory audits differ from other assurance engagements?

Statutory audits are designed to serve the public interest and, as a result, their reports are generally in the public domain. This means that the findings of statutory audits are accessible to various stakeholders, including shareholders, regulators, and the general public. This openness is crucial as it assures stakeholders that financial statements are accurate and reliable, which enhances trust in the financial reporting process.

In contrast, other assurance engagements might be more limited in scope and may not be required to be disclosed publicly. For example, reviews or agreed-upon procedures often cater specifically to the needs of management or a select group of users involved rather than the broader public. Therefore, a statutory audit's requirement for transparency and public access contrasts with the more private nature of many other types of assurance engagements.