Chapter 6 - Planning an assurance engagement

Question 1

Assurance Engagement:

What is the difference with planning an audit engagement?

Answer 1

One ISA coves acceptance, planning, evidence and reporting

Question 2

Assurance Engagement:

What is it?

Answer 2

Profit forecast

Cash flow forecast

Forecast of financial position

Question 3

Assurance Engagement:

Management responsibilities?

Answer 3

Prepare prospective financial information

Question 4

Assurance engagement:

Assurance provider responsibilities?

Answer 4

Assumptions are reasonable

Question 5

Assurance Engagement:

What are the relevant audit procedures?

Answer 5

• Consider management competence
• Assess reasonableness of assumptions
• Check forecasts have been made based on assumptions
• Check mathematical accuracy
• Written represenation (intended use, completeness of assumptions, accept responsibility for financial info)

Question 6

Review engagement:

What is it?

Answer 6

review historic info

Question 7

Review engagement:

Management responsibilities?

Answer 7

prepare financial info according to relevant framework

Question 8

Review engagement:

Assurance provider responsibilities?

Answer 8

free from material misstatement

did anything come to their attention to suggest not true and fair

Question 9

Review engagement:

Audit Procedures?

Answer 9

Enquire management

Analytic procedures

Written management representation

Question 10

Which companies are required to make a disclosure of green house gas emissions? GHG statement

Answer 10

Companies listed on the main market of London Stock Exchange

Question 11

GHG statement:

Level of assurance - Reasonable

Answer 11

Prepared in accordance with acceptable criteria

Question 12

GHG statement:

Level of assurance - Limited

Answer 12

Anything come to attention as not prepared in accordance with criteria