A Type 2 report includes a report on what aspect over a specified period?

A Type 2 report specifically focuses on the effectiveness of controls over a period of time. It is commonly associated with an attestation engagement typically relating to service organizations, where the report assesses how effectively the controls were operating during the specified period. This type of report provides users with assurance regarding both the design and operational effectiveness of those controls in mitigating risks, which is critical for users who rely on those controls for their own financial reporting processes.

While financial statements, management assertions, and entity governance are important aspects of corporate reporting and controls, they do not directly correspond to the primary focus of a Type 2 report. The Type 2 report evaluates how well the controls are functioning over the reviewed time frame, making it crucial for users who need to assess the reliability and integrity of the systems they rely on. This assurance is vital in environments where external parties depend heavily on the output and performance of an organization's controls, especially in service-oriented sectors.