Scribd Logo
Upload

Welcome to Scribd!

  • 33 views

    Assurance Engagement: Draft

    Uploaded by

    Issa Boy
    An assurance engagement involves a practitioner obtaining evidence to express a conclusion that enhances the confidence of intended users, other than the responsible party, in an underlying subject matter against criteria. There is a three party relationship between the intended user, responsible party, and practitioner. The practitioner evaluates the subject matter prepared by the responsible party against suitable criteria and issues an assurance report containing their opinion. Assurance engagements can provide either reasonable or limited assurance, with reasonable assurance aiming for an acceptably low risk and limited assurance identifying material misstatements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Assurance Engagement: Draft

    Uploaded by

    Issa Boy
    33 views3 pages
    An assurance engagement involves a practitioner obtaining evidence to express a conclusion that enhances the confidence of intended users, other than the responsible party, in an underlying subject matter against criteria. There is a three party relationship between the intended user, responsible party, and practitioner. The practitioner evaluates the subject matter prepared by the responsible party against suitable criteria and issues an assurance report containing their opinion. Assurance engagements can provide either reasonable or limited assurance, with reasonable assurance aiming for an acceptably low risk and limited assurance identifying material misstatements.

    Original Description:

    Engagement assurance

    Original Title

    4_5771876703643110419

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    An assurance engagement involves a practitioner obtaining evidence to express a conclusion that enhances the confidence of intended users, other than the responsible party, in an underlying subject matter against criteria. There is a three party relationship between the intended user, responsible party, and practitioner. The practitioner evaluates the subject matter prepared by the responsible party against suitable criteria and issues an assurance report containing their opinion. Assurance engagements can provide either reasonable or limited assurance, with reasonable assurance aiming for an acceptably low risk and limited assurance identifying material misstatements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views3 pages

    Assurance Engagement: Draft

    Uploaded by

    Issa Boy
    An assurance engagement involves a practitioner obtaining evidence to express a conclusion that enhances the confidence of intended users, other than the responsible party, in an underlying subject matter against criteria. There is a three party relationship between the intended user, responsible party, and practitioner. The practitioner evaluates the subject matter prepared by the responsible party against suitable criteria and issues an assurance report containing their opinion. Assurance engagements can provide either reasonable or limited assurance, with reasonable assurance aiming for an acceptably low risk and limited assurance identifying material misstatements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    ACCA AA

    Draft

    Assurance Engagement
    An assurance engagement is one in which:

    A practitioner aims to obtain sufficient appropriate evidence in order to express a


    conclusion designed to enhance the degree of confidence of the intended users other than
    the responsible party about the outcome of the measurement or evaluation of an
    underlying subject matter against criteria.

    Elements of an assurance engagement

    Lecture support notes by Alan Biju Palak


    An assurance engagement performed by a practitioner will consist of the
    following elements:
    (a)  A three party relationship. The three parties are the intended user, the responsible
    party and the practitioner (each party is described in the Key terms box below). 


    (b)  A subject matter. This is the data to be evaluated that has been prepared by the
    responsible party. It can take many forms, including financial performance.

    (c)  Suitable criteria. The subject matter is evaluated or measured against criteria in
    order to reach an opinion. 


    (d)  Evidence. Sufficient appropriate evidence needs to be gathered to support the


    required level of assurance. 


    (e)  An assurance report. A written report containing the practitioner's opinion is issued
    to the intended user, in the form appropriate to a reasonable assurance engagement or a
    limited assurance engagement. 


    For any queries - [email protected] Page 1


    ACCA AA
    Draft
    The revised ISAE distinguishes between two forms of assurance engagements:

    Reasonable assurance engagements

    Limited assurance engagements 


    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 the assurance practitioner's conclusion (ISAE 3000 (Revised):
    para.12ia). The conclusion would usually be expressed in a positive form.

    Limited assurance is a lower level of assurance. The nature, timing and extent of the
    procedures carried out by the practitioner in a limited assurance engagement would be
    limited compared with what is required in a reasonable assurance engagement.

    Lecture support notes by Alan Biju Palak


    Nevertheless, the procedures performed should be planned to obtain a level of assurance
    which is meaningful, in the practitioner's professional judgement.

    For a limited assurance engagement, the conclusion conveys whether, based on the
    procedures performed and evidence obtained, a matter(s) has come to the practitioner's
    attention to cause the practitioner to believe the subject matter information is materially
    misstated (ISAE 3000 (Revised): para.12ib).

    This would usually be expressed in a negative form of words.

    Review Engagement
    The objective of a review engagement is to obtain limited assurance about whether the
    subject matter information is free from material misstatement.

    Types of review engagements


    (a) An attestation engagement: This is where the underlying subject matter has not been
    measured or evaluated by the practitioner, and the practitioner concludes whether or not
    the subject matter information is free from material misstatement (ISAE 3000: para.
    12aiia).

    (b) A direct engagement: This is where the underlying subject matter has been measured
    and evaluated by the practitioner, and the practitioner then presents conclusions on the
    reported outcome in the assurance report (ISAE 3000: para.12aiib).

    For any queries - [email protected] Page 2


    ACCA AA
    Draft
    True and fair
    True: Information is factual and conforms with reality. In addition, the information
    conforms with required standards and law. The financial statements have been correctly
    extracted from the books and records.

    Fair: Information is free from discrimination and bias and in compliance with expected
    standards and rules. The accounts should reflect the commercial substance of the
    company's underlying transactions.

    Lecture support notes by Alan Biju Palak

    For any queries - [email protected] Page 3

    You might also like