Assurance and Non-Assurance Services Topic 11 & 12 Quiz

In a review engagement, what is the level of assurance provided regarding the financial information?

What type of procedures are NOT typically performed in a review engagement?

What is the primary objective of a review engagement for a Chartered Accountant?

What should the accountant comply with in a review engagement according to the IFAC?

What type of report is typically expressed in a review engagement?

What is the primary purpose of a review engagement?

Which of the following is an example of an agreed upon procedure?

What type of assurance is provided in a compilation engagement?

Which service involves examining the financial information for use in legal proceedings?

What is the main focus of due diligence services?

Review Engagement

Level of assurance provided regarding financial information: Limited assurance
Primary objective: Express a conclusion as to whether, based on the procedures performed, anything has come to the reviewer's attention that causes the accountant to believe that the financial statements are not in all material respects in accordance with the applicable financial reporting framework

Procedures and Objectives

Procedures NOT typically performed: Audit procedures (e.g. verification of inventories, observation of physical counts, confirmation of accounts receivable and payable)
Primary purpose: Provide limited assurance that the financial statements are free of material misstatement

Reporting and Compliance

Type of report typically expressed: Unmodified or modified review report
Compliance requirement: Accountant must comply with the International Standard on Review Engagements (ISRE) issued by the International Federation of Accountants (IFAC)

Other Services

Example of an agreed-upon procedure: Inventory count observation
Type of assurance provided in a compilation engagement: No assurance
Service that involves examining financial information for use in legal proceedings: Litigation support
Main focus of due diligence services: Evaluating the financial and operational aspects of a business before a significant transaction (e.g. merger, acquisition)

Test your understanding of audit related services and other assurance and non-assurance services, including internal auditing, consultation, taxation, accounting, and more. Explore the relationship between assurance and non-assurance services.