Module 1 Assurance Engagements

Question 1

What are the 5 elements of an assurance engagement?

Answer 1

CREST

C- Criteria
R- Assurance Report
E- Evidence
S- Suitable criteria
T- Three party relationship

Question 2

What is the three party relationship?

Answer 2

Consists of:
1) Intended user
2) Responsible party
3) The practitioner

Question 3

What is the subject matter?

Answer 3

This is the data which the responsible party has prepared and requires verification

Question 4

What is reasonable assurance?

Answer 4

Practitioner reduces engagement risk to an acceptably low level

Written in a positive form

Question 5

What is Limited assurance?

Answer 5

The level of risk is higher compared to reasonable assurance

Written in a negative form

Question 6

What is the assurance acceptance checklist?

Answer 6

SCCCRAPPUM

S- Scope and nature
C- Client id checks
C - Commercial liability
C - Contact existing or previous auditor
R - Risk
A - Ability to undertake
P- Preconditions present
U- Users
M- Management integrity