Module 7: Intro To Assurance

Question 1

IFAC defines elements of Assurance Engagement ‘The Framework’

Answer 1

1. 3 party relationship
2. Appropriate underlying subject matter
3. Suitable criteria: benchmarks used to evaluate underlying subject matter. E.g. IFRS
4. Sufficient, appropriate evidence
5. Assurance report

Question 2

2 type of assurance

Answer 2

1. Reasonable: reduces engagement risk to acceptably low level. Opinion expressed in the positive form. Concludes reasonably certain that subject matter is free from MM. High but not absolute level of assurance.
2. Limited: level of risk is higher. Concludes no evidence that subject matter is MM. work less rigorous. Less reliance can be placed on opinion. Negative form

Question 3

Accepting a client.

Answer 3

• Based on commercial consideration impacting the firm and consideration of regulation

Can be financial, reputation, ethical and legal