Assurance engagement

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.

5. Written Assurance Report;

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.

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