What is the purpose of assurance engagement?

What is the purpose of assurance?

The main aim of assurance is to check the accuracy of financial reports. It also assures all the stakeholders that there is no misrepresentation done in financial records, no misuse of funds, no fraud, and no fraudulent activities done in a company or done by the company.

What are the benefits of assurance engagement?

But what are the benefits?

  • A closer look at a business through the eyes of a skilled business professional.
  • Ensures users are more confident that the information presented to them is reliable.
  • Gives more credibility to business reporting processes.
  • Facilitates the running and management of the business.

What are the four reasons for conducting an assurance engagement?

Four reasons why to conduct an assurance engagement: Risk, Internal Controls evaluation for External Reporting, “post mortem” event diagnose, modifications to process (immediate changes) needed.

What are the five elements of an assurance engagement?

The five elements of an assurance engagement

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The elements are: the three-party relationship; appropriate subject matter; suitable criteria; appropriate evidence; and a conclusion.

What is an assurance service engagement?

An assurance service engagement entails independent professionals (i.e., usually CPAs or those working for CPA firms) working to improve the quality of information, or its content for decision-makers.

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 information should be included in an assurance engagement observation description?

What information should be included in an assurance engagement audit observation description? Condition (facts) – Factual evidence and description of controls as they exist (what is). What was found through testing.

What steps are included in the communication phase of an assurance engagement?

What steps are included in the communication phase of an assurance engagement?

Give an example of each.

  • Advisory (i.e. Advising on control design)
  • Educational (i.e. Training on risk management and internal control)
  • Facilitative (i.e. Facilitating the organization’s risk assessment process)

What purposes does a well written program serve?

What purpose does a well written work program serve? It specifically outlines the audit procedures required to accomplish the engagement objectives. What steps are included in the performance phase of an assurance engagement?

What are the components of assurance engagement risk?

Engagement risk refers the overall risk associated with an audit engagement and it consists of three components: client’s business risk, auditor’s business risk, and audit risk.

Who are the intended users of assurance engagement?

assurance engagement means an engagement in which a professional accountant expresses a conclusion designed to enhance the degree of confidence an intended user can have about the evaluation or measurement of a subject matter, that is the responsibility of a third party, against relevant criteria.

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Who is the responsible party in an assurance engagement?

The three parties typically involved in an assurance engagement are: the responsible party, the users and the practitioner. The responsible party performs operations or provides information for the benefit of or relevant to users. This party is responsible for the subject matter over which assurance is sought.