ASSURANCE ENGAGEMENT

An engagement in which:
(1) a practitioner expresses a conclusion designed to (2) enhance the
degree of confidence of the intended users (3) other than the
responsible party (4) about the outcome of the evaluation or
measurement of a subject matter against criteria.
 Free from
EXTERNAL misstatements
AUDITOR due to error or
fraud

Financial position,
financial performance
and cashflows expressed
in Financial statements

Company’s BOD
and/or
PFRS
Government
agencies
NATURE OF ASSURANCE ENGAGEMENTS

 Assurance services are independent professional services intended to enhance

or improve the credibility or quality of information to meet the needs of an
intended user.
 Assurance refers to the practitioner ’s satisfaction as to the reliability of an
assertion being made by one party for use by another party.
 Subject matter information is used to mean the outcome of the evaluation or
measurement of subject matter.
Objective of Assurance Engagements

 To provide a high level of assurance that the subject matter

conforms in all material respects with identified suitable criteria; or
 To provide a moderate level of assurance that the subject matter is
possible in the circumstances.
RANGE OF ASSURANCE
ENGAGEMENTS
 Engagements to report on a broad range of subject matters
covering financial and non-financial information.
 Engagements intended to provide high or moderate level of
assurance.
 Attest and direct reporting engagements.
 Engagements to report internally and externally.
 Engagements in private and public
 TYPES OF ASSURANCE ENGAGEMENTS –
LEVEL OF ASSURANCE
Reasonable assurance engagements
“the financial statements have
 the practitioner gathers sufficient been prepared in accordance
QUANTITY
RELIABILITY
RELEVANCE
QUALITY
DIRECT
appropriate evidence to conclude with applicable legislation and
accounting standards”
that the subject matter conforms in all
material respects with identified
suitable criteria, and gives a report in
the form of a positive assurance.
Limited Assurance Engagement

 the practitioner gathers sufficient “nothing has come to our

appropriate evidence to attention that causes us to
conclude that the subject matter believe that the financial
is plausible in the circumstances, statements are not prepared in
INDIRECT
and gives a report in the form of accordance with applicable
a negative assurance. legislation and accounting
standards”
OTHER ASSURANCE ENGAGEMENT

Assertion-based engagement

performance engagement where the assurance

practitioner reports on assertions prepared by the
responsible party regarding the economy, efficiency
or effectiveness of the activity.
Direct reporting engagements
those where the practitioner either directly performs
the evaluation or measurement of the subject matter
or obtains a representation from the responsible
party that has performed the evaluation or
measurement that is not available to the intended
users
FINISH NA HEHEHEHEHE.
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