Assurance engagement is an assignment in which a practitioner expresses a conclusion designed to enhance degree of confidence of intended user,other than responsible party about the outcome of the evaluation or measurement of Subject matter against criteria.
The following are elements of assurance engagement
Three party relationship
An assurance engagement will involve three separate parties:
- The intended user who is the person who require the assurance report
- The responsible party which is the organization responsible for preparing the subject matter to be reviewed by the practitioner
- The practitioner ( that is accountant) who is professional Who will review the Subject matters prepared by responsible person in order to provide the assurance.
Suitable subject matter
These are information prepared by responsible party which are to be reviewed in order to provide assurance on them. for example in audit the subject matter is financial Statements
subject matter is compared to the criteria in order for it to be assessed and opinion provided. In audit criteria used to assess financial statements are IFRS.
Sufficient and appropriate audit evidence
Sufficient and appropriate evidence has to be obtained by the practitioner in order to give the required level of assurance
An assurance report is the opinion that is given by practitioner to the intended user and responsible party.
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