The subject matter of an assurance engagement can take the following forms, except
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This page summarises how the five elements of assurance relate to one another. The elements are: the three-party relationship; appropriate subject matter; suitable criteria; appropriate evidence; and a conclusion. Show
The five elements:
How the elements relate to each otherAssurance engagements involve three separate parties: a practitioner, a responsible party and intended users of the assurance report. The responsible party is responsible for the information on which the practitioner is engaged to give a conclusion. Buyer's guide to assurance on non-financial informationFind out moreEngagements will only comply with the ISAAB's Amended International Framework for Assurance Engagements (the Framework) if there is at least one intended user of the report other than the responsible party. Acknowledgement by the responsible party for its responsibilities is essential to ensure the appropriate relationship exists between the responsible party and the practitioner, and to establish a basis for a common understanding of the responsibility of each party. The assurance services need not necessarily include an external user as, in some circumstances, it may be appropriate to provide assurance over the client’s own operations for the client’s own use. In such cases there will be two different parties within the organisation – those responsible for the operations under scrutiny (such as management) and those ultimately responsible for the organisation (the Board). We refer to this as a three-party relationship despite there being only one organisation other than the practitioner. The subject matter of an assurance engagement can take many forms. An appropriate subject matter is (a) identifiable, and capable of consistent evaluation or measurement against the identified criteria; and (b) such that the information about it can be subjected to procedures for gathering sufficient appropriate evidence to support a reasonable assurance or limited assurance conclusion, as appropriate. Suitable criteria are necessary because they provide the frame of reference for a reasonably consistent evaluation or measurement of a subject matter. What constitutes suitable criteria will depend on the engagement circumstances – in some circumstances they may be identified by law or regulation, in others they may be specifically designed to meet the needs of specific intended users. Suitable criteria exhibit the following characteristics: relevance, completeness, reliability, neutrality and understandability. Recommended textbook solutions
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Technical Writing for Success3rd EditionDarlene Smith-Worthington, Sue Jefferson 468 solutions Technical Writing for Success3rd EditionDarlene Smith-Worthington, Sue Jefferson 468 solutions Technical Writing for Success3rd EditionDarlene Smith-Worthington, Sue Jefferson 468 solutions 14.The subject matter of an assurance engagement can take thefollowing forms excepta.The entity’s internal control.b.Historical or prospective financial statements. c.Evaluation of a capital investment proposal.d.Performance of an entity that could indicate efficiencyand effectiveness. 15.In performing an assurance engagement, a professionalaccountant typically d.Expresses a conclusion about an assertion. 16.Which of the following is not an assurance engagement?a.Risk Assessment Serviceb.Information System Reliability Service We have textbook solutions for you!The document you are viewing contains questions related to this textbook. Fraud Examination Albrecht/Albrecht Expert Verified AT–Prelim Rev (875 MCQs)Red SirugPage 11 of 85c.Business Performance Measurementd.Management Consulting Service17.The three commonly-sought types of assurance services areb.Audits, reviews, and other assurance services.c.Audits, compilations, and other assurance services.d.Reviews, compilations, and other assurance services.18.Which of the following statements is true?d.The degree or level of assurance that may be provided bythe practitioner is inversely related to the scope ofprocedures performed and their results.19.Which of the following forms may be the subject matter ofassurance engagements?20.Engagement risk is influenced by the risks associated with thefollowing except21.Absolute assurance is not attainable as a result of suchfactors as:22.If the auditor learns that an entity is inappropriately using theauditor’s name in association with financial information, he/sheshould:a.Remain silent.b.Seek legal advice if necessary.c.Require management to cease doing so.d.Inform any known third party users of the inappropriateuse of his/her name in connection with the information. What are the 5 elements of this assurance engagements?The five elements of an assurance engagement
The elements are: the three-party relationship; appropriate subject matter; suitable criteria; appropriate evidence; and a conclusion.
What are the three 3 most commonly sought assurance services?In order of increasing level of rigor, accountants generally offer three types of assurance services: compilations, reviews and audits.
What are the types of assurance engagement?Under this Framework, there are two types of assurance engagement a practitioner is permitted to perform: a reasonable assurance engagement and a limited assurance engagement.
What form of assurance does a review engagement provide?A review engagement provides a moderate level of assurance that the information subject to review is free of material misstatement, this is expressed in the form of negative assurance.
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