F8 KNOWLEDGE SUMMARY-SKANS SCHOOL OF ACCOUNTANCY
3
Assurance Engagements
The practitioner examines the subject matter made available by the responsible party, matches it to the
suitable criteria using evidence and reports to the intended users.
Elements of an assurance engagement
1.
An assurance engagement will require a three-party relationship comprising of:
a)
The intended user who is the person who requires the assurance report.
b)
The responsible party, which is the organisation responsible
for preparing the subject
matter to be reviewed.
c)
The practitioner (i.e. an accountant) who is the professional who will review the subject
matter and provide the assurance.
2.
A second element which is required for an assurance engagement is suitable subject matter. The
subject matter is the data which the responsible party has prepared and which requires verification.
3.
Thirdly this subject matter is then evaluated or assessed against suitable criteria in order for it to be
assessed and an opinion provided.
4.
Fourth, the practitioner must ensure that they have gathered sufficient appropriate evidence in order to
give the required level of assurance.
5.
Last, an assurance report provides the opinion which is given by the practitioner to the
intended user
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