16 Questions
In an assurance engagement, what kind of relationship does it involve?
A three-party relationship involving a practitioner, a responsible party, and intended users
Which of the following is NOT a common example of non-assurance engagement?
Audit
What is the main focus of an assurance engagement?
Improving the quality or enhancing credibility of the subject matter
What does independence requirement mean in an assurance engagement?
Independence is required for the practitioner
What is the main difference between assurance and non-assurance engagements?
Assurance engagements are focused on improving the quality or enhancing credibility of the subject matter, while non-assurance engagements focus on providing comments, suggestions, or recommendations on how to use the information
What are the common examples of assurance engagements?
Audit, Review, Examination of Prospective Financial Information
Who is responsible for determining the nature, timing or extent of procedures required by the engagement in an assurance engagement?
The Practitioner
What does the subject matter information pertain to in an assurance engagement?
The outcome of the evaluation or measurement of the subject matter
What are the characteristics of an appropriate subject matter in an assurance engagement?
Identifiable and capable of consistent evaluation
In an assurance engagement, which party/s are responsible to the subject matter, the subject matter information, or both?
The Responsible Party
Who are the intended users in an assurance engagement?
Major stockholders with significant and common interests
Which type of subject matter information can be represented in financial statements in an assurance engagement?
Performance of an entity
What does the practitioner gather sufficient evidence for in relation to subject matter information in an assurance engagement?
To provide a reasonable basis for expressing a conclusion in an assurance report
What pertains to the outcome of the evaluation or measurement of the subject matter in an assurance engagement?
Subject Matter Information
What can take many forms in an assurance engagement?
The subject matter, and subject matter information
What is responsible for representing measurement, presentation, and disclosure in financial statements in an assurance engagement?
The outcome of the evaluation or measurement of the subject matter
Test your understanding of the fundamental concepts of assurance services by comparing assurance and non-assurance engagements. Explore the differences between assurance and non-assurance services and enhance your knowledge in this area.
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