What type of statement is an engagement statement?

An engagement statement is an unaudited statement that provides only partially reviewed information. This means that it does not undergo a thorough audit process, which would be necessary for a fully audited financial statement. Instead, an engagement statement typically presents financial information that has been subject to limited review procedures, allowing it to be more informal and less rigorously vetted than fully audited statements.

This type of statement is commonly used in situations where a complete audit is not required, but the stakeholders still need some level of assurance regarding the integrity of the financial data presented. The focus on limited assurance helps organizations save time and costs associated with comprehensive audits while still providing stakeholders with useful financial insights.