What type of report can be issued on compliance?

When discussing reports on compliance, it is essential to recognize that a separate report of compliance serves a specific purpose. This type of report focuses exclusively on an entity's adherence to certain applicable laws, regulations, or contractual agreements that pertain to its operations. Such reports are often required in contexts where compliance is critical, such as government contracts or various regulatory frameworks.

A separate report allows auditors to delineate their findings regarding compliance distinctly from the financial audit, which can enhance clarity for stakeholders who may be interested specifically in compliance matters. It provides assurance to interested parties—such as regulators, funding agencies, or management—that the entity is meeting the necessary legal and regulatory requirements.

While there are other forms of reports that may incorporate compliance elements, such as a combined financial and compliance report, these do not offer the focused and explicit assessment that a separate report provides. Thus, the option of issuing a separate report is particularly valuable for stakeholders who need targeted insights regarding compliance without the potential mixing of financial reporting issues.