You asked: Why do we need to conduct 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.

How do you conduct an assurance engagement?

The five elements of an assurance engagement

  1. A three-party relationship, involving: the practitioner, a responsible party and intended users.
  2. Appropriate subject matter.
  3. Suitable criteria.
  4. Sufficient, appropriate evidence to support the conclusion.
  5. A conclusion contained within a written report.

What is the objective of a reasonable assurance engagement?

The objective of a reasonable assurance engagement is a reduction in assurance engagement risk to an acceptably low level in the circumstances of the engagement6 as the basis for a positive form of expression of the practitioner’s conclusion.

What is an assurance engagement?

“An assurance engagement” is an engagement in which a practitioner obtains sufficient appropriate evidence in order to express a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the measurement or evaluation of an underlying subject …

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.

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What is the purpose of the Philippine framework for assurance engagements?

Introduction: This Framework deals with assurance engagements performed by practitioners. It provides a frame of reference for practitioners and others involved with assurance engagements, such as those engaging a practitioner (the “engaging party”).

What is the concept of reasonable assurance?

Reasonable assurance is a high level of assurance regarding material misstatements, but not an absolute one. Reasonable assurance includes the understanding that there is a remote likelihood that material misstatements will not be prevented or detected on a timely basis.

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.