What is assurance engagement in audit

The objective of an assurance engagement is to obtain sufficient appropriate evidence to express a conclusion, providing reasonable or limited assurance, as to whether the audited body has complied with the specified requirements of the appropriate legislation (the 'criteria') in all material respects.

What is an example of an assurance engagement?

Reasonable assurance engagements A financial statement audit is an example of a reasonable assurance engagement. This type of engagement reduces assurance engagement risk to an acceptably low. The engagement risk is reduced to a level that allows for a positive form of expression in the auditor's conclusion.

What are the 5 elements of this assurance engagements?

The five elements of an assurance engagement\n\n The elements are: the three-party relationship; appropriate subject matter; suitable criteria; appropriate evidence; and a conclusion.

What is the difference between audit engagement and assurance engagement?

The notable differences between audit and assurance are as follows: Audit is a procedure of closely monitoring the accounting information provided in a company's financial statements. Assurance, on the other hand, involves assessing and analyzing different operations, processes, and procedures.

What is the scope of assurance engagement?

The scope of assurance report is thus determined to focus on these four objectives. Assurance engagements envisaged in this guidance involve three parties: the responsible party, users, and the practitioner. The responsible party performs operations or provides information for the benefit of or relevant to users.