Assurance

What is assurance engagement?

An assurance engagement is one where a practitioner expresses a conclusion, designed to enhance the degree of confidence for intended user, other than responsible party, about the outcome of evaluation or measurement of subject matter against suitable criteria.

Key elements

• · Three party involvements
• · Subject matter
• · Suitable criteria
• · Sufficient appropriate evidence
• · Written report

Level of assurance engagement

Two types:

· Reasonable assurance engagement

· Limited assurance engagement

Examples of assurance engagement

v Key example is statutory audit

v Other audits-

§ Local authority audit

§ Insurance co audit

§ Bank audit

§ Pension scheme audit

§ Charity audit

§ Solicitors audit

§ NGO audit

§ Environmental audit

§ Branch Audit

v Other assurance engagement-

§Value for money audit

§Circulation audit

§Cost/benefit audit

§Due diligence

§Review of specialist business activity

§Internal audit

§Report on website securities

§Inventories or receivable

§Internal control

§Fraud investigation