In what context is an attestation engagement performed?

An attestation engagement is performed in the context of examining agreed-upon procedures on a limited basis. This type of engagement provides assurance about specific information rather than providing a full audit. The practitioner is engaged to report on the findings based on the procedures performed, which are agreed upon by the specified parties. This emphasis allows users to understand particular aspects of financial information or compliance without the comprehensive examination that would be typical in a full financial audit.

In contrast, assessing overall agency performance does not specifically align with attestation engagements, as it tends to focus on the broader operational context rather than specific agreed-upon procedures. The creation of annual financial statements typically involves financial reporting and not the limited scope that characterizes attestation services. Similarly, the approval of state and local financial reports usually involves processes of oversight or governance, rather than the independent examination of specific procedures that attestation engagements focus on. These distinctions highlight why the correct context for an attestation engagement is associated with examining agreed-upon procedures on a limited basis.