Certified Government Financial Manager (CGFM) 2026 – 400 Free Practice Questions to Pass the Exam

The classification of audit engagements encompasses various types that are carried out to assess different aspects of an organization’s operations and finances. Each type has distinct purposes and methodologies.

Attestation engagements involve an auditor's opinion on the reliability of a report prepared by a third party, often providing assurance regarding non-financial information. Performance audits assess the economy, efficiency, and effectiveness of an organization's operations, focusing on how well resources are managed and utilized. Financial audits evaluate the accuracy and completeness of an organization's financial statements, ensuring compliance with relevant accounting standards and regulations.

In contrast, financial assessments typically do not represent a formal type of audit engagement recognized in the same category as the others listed. They often involve informal evaluations or reviews of financial information rather than an independent audit with established standards and procedures. Therefore, this distinction supports the understanding that financial assessments are not classified as a type of audit engagement like the others.