Differentiate between Building Quality Assessment and Physical Building Audit.

An audit engagement is an assurance engagement, but not all assurance engagements are audits.

Audit of financial statements—The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared,

in all material respects, in accordance with an applicable financial reporting framework. An audit of financial statements is an assurance engagement.

Assurance engagement—An engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria. The outcome of the evaluation or measurement of a subject matter is the information that results from applying the criteria (also see Subject matter information). Under the “International Framework for Assurance Engagements” there are two types of assurance engagement a practitioner is permitted to perform: a reasonable assurance engagement and a limited assurance engagement.

Reasonable assurance engagement—The objective of a reasonable assurance engagement is a reduction in assurance engagement risk to an acceptably low level

in the circumstances of the engagement as the basis for a positive form of expression of the practitioner’s conclusion.

Limited assurance engagement—The objective of a limited assurance engagement is a reduction in assurance engagement risk to a level that is acceptable in the

circumstances of the engagement, but where that risk is greater than for a reasonable assurance engagement, as the basis for a negative form of expression of the practitioner’s conclusion.