Assurance Engagement
Assurance Engagement: “Assurance engagement” means an engagement during which a
practitioner(i.e. assurance provider).
Obtains
evidence about the evaluation of a subject matter against suitable criteria.
And
expresses his conclusion to strengthen the arrogance of the intended users
(other than the responsible party).
Elements of
assurance engagement
Elements of
Assurance Engagement. Every assurance engagement consists of the following 5
elements.
Element
Explanation (with regard to assurance on financial statements).
1. A 3 party
relationship.
a. Intended
users (the parties for whom material and assurance report is ready i.e.
shareholders, bankers)
b. A
responsible party (the party which prepares material i.e. management) and
c. A
practitioner (the party which provides assurance on material i.e. auditor)
2. Atopic
matter;
The subject matter is that the info which responsible party is required to arrange i.e.
Financial Statements
3. Suitable
Criteria;
Criteria
mean Framework (i.e. policy and set of laws) under which monetary statements
are geared up and assess e.g. IFRS or commandment.
Appropriate
means it should be selected suitably.
4. Evidence;
substantiation
means information on which practitioner’s termination is based.
Evidence
should be sufficient and appropriate.
Written Assurance Report it's a page that is written in the standard format.
It takes in termination
of practitioner, and it's an offer by the practitioner to future users.