Module 1 - Assurance Engagements Flashcards
1
Q
Requirements of an assurance engagement
A
- Suitable Criteria
- Underlying subject
- Three party relationship
- Sufficent Appropriate Evidence
- Assurance Report
CUTER
Three party = practitioner, responsible party and users)
2
Q
8 to 9 steps
Acceptance Procedures
A
- Identify user and nature
- Assess legal and financial stability
- integrity of governance, management and owners
- firms ability to undertake audit (ethically and practically)
- client identification
- agree basis of performance
- commercial viability of expected fee
- preconditions for engagement are present
- (STATUTORY AUDIT) - Communicate with previous auditor
3
Q
reasonable vs limited assurance
A
- Reasonable is positive, limited is negative
- Both requires sufficent appropriate evidence
- Less risk in reasonable
4
Q
Acceptance risks
A
Commerical - financial and repuatational
Professional - ethical and legal
