assurance engagement

assurance team

Assurance team – meaning

Assurance team are all professionals participating in the assurance engagement and all others within a firm who can directly influence the outcome of the assurance engagement, including:

  • Those who recommend the compensation of, or who provide direct supervisory, management or other oversight of the assurance engagement partner in connection with the performance of the assurance engagement.
  • Those who provide consultation
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What is the difference between audit and compliance?

Audit is an independent examination of business financial statements so as to issue opinion on whether the financial statement are prepared in accordance with acceptable financial reporting framework and show true performance and position of the business. Audit is conducted according to the requirements of countries laws and regulations and international standard on auditing. The auditor when conducting audit aim … Read the rest

Absolute assurance in auditing - meaning

Absolute assurance in auditing – meaning

In most cases, users of financial information would expect a practitioner to provide 100% assurance during the audit or assurance engagement. Issuing such assurance level is not practical due to inherent limitations that are associated with assurance engagements. For this reason, International standards on assurance engagement (ISAE 3000) do not permit a practitioner from issuing a total assurance (absolute) … Read the rest

Why is absolute assurance in auditing impossible?

Why is absolute assurance in auditing impossible?

Absolute assurance in audit is the level of assurance whereby audit concludes that no misstatement is in financial statements. This level of assurance implies that the auditor is sure 100% that the financial statements are free from material misstatements.

Absolute assurance in auditing cannot be reached due to the following reasons:

  • The audit process
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5 elements of assurance engagement

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
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