Assurance Engagement and Subject Matter Information Quiz

Assurance engagement = An engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria. Subject matter information = The outcome of the evaluation or measurement of a subject matter that results from applying the criteria to the subject matter. Assertion-based engagements = The evaluation or measurement of the subject matter is performed by the responsible party, and the subject matter information is in the form of an assertion by the responsible party that is made available to the intended users. Financial reporting framework = A framework for recognition, measurement, presentation, and disclosure in financial statements, such as Philippine Financial Reporting Standards.

Recognition, measurement, presentation and disclosure represented in the financial statements = Entity's financial position, financial performance and cash flows An assertion about the effectiveness of internal control = Internal control, a process Philippine Financial Reporting Standards = Recognition, measurement, presentation and disclosure in financial statements Framework for evaluating the effectiveness of internal control, such as COSO or CoCo = Internal control

Outcome = Result from applying a financial reporting framework for recognition, measurement, presentation and disclosure to an entity's financial position, financial performance and cash flows. Criteria = The framework for evaluating the effectiveness of internal control, such as COSO or CoCo. Subject matter = An assertion by the responsible party that is made available to the intended users. Responsible party = An engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria.

<p>Financial reporting framework = Recognition, measurement, presentation and disclosure represented in the financial statements Subject matter information = An assertion about the effectiveness of internal control Assertion-based engagements = The recognition, measurement, presentation and disclosure represented in the financial statements result from applying a financial reporting framework for recognition, measurement, presentation and disclosure to an entity's financial position, financial performance and cash flows. Assurance engagement = The evaluation or measurement of the subject matter is performed by the responsible party, and the subject matter information is in the form of an assertion by the responsible party that is made available to the intended users.</p> Signup and view all the answers

<p>Assurance engagement = Evaluation or measurement of a subject matter Subject matter information = Outcome resulting from applying criteria to the subject matter Assertion-based engagements = Evaluation or measurement performed by responsible party Responsible party = Assertion made available to intended users</p> Signup and view all the answers

<p>Recognition, measurement, presentation and disclosure represented in the financial statements (outcome) = Philippine Financial Reporting Standards (criteria) An assertion about the effectiveness of internal control (outcome) = Framework for evaluating the effectiveness of internal control, such as COSO or CoCo (criteria) Entity's financial position, financial performance and cash flows (subject matter) = Financial reporting framework for recognition, measurement, presentation and disclosure (criteria) Internal control, a process (subject matter) = Framework for evaluating the effectiveness of internal control, such as COSO or CoCo (criteria)</p> Signup and view all the answers

<p>Reasonable assurance engagement = Reduction in assurance engagement risk to an acceptably low level for a positive form of expression of conclusion Limited assurance engagement = Reduction in assurance engagement risk to a level acceptable in the circumstances for a negative form of expression of conclusion Direct reporting engagements = Practitioner either directly performs evaluation/measurement or obtains representation from responsible party for information in assurance report Non-assurance engagements = Engagements not meeting the definition of assurance engagements, such as agreed-upon procedures, compilations, tax consulting, and management consulting</p> Signup and view all the answers

<p>Implying compliance with the Framework, PSAs, PSREs or PSAEs = Avoided in a report that is not an assurance report Inappropriately using the words 'assurance,' 'audit' or 'review' = Avoided in a report that is not an assurance report Including a statement that could be mistaken for a conclusion enhancing the degree of confidence of intended users = Avoided in a report that is not an assurance report Statement restricting the use of the report to the responsible party = Included in a practitioner's report when applying the principles of the Framework to an engagement with no intended users other than the responsible party</p> Signup and view all the answers

<p>Engagements covered by PSRSs = Agreed-upon procedures engagements and compilations of financial or other information Preparation of tax returns where no conclusion conveying assurance is expressed = Example of engagements not covered by the Framework as they do not meet the definition of assurance engagements Consulting (or advisory) engagements = Example of engagements not covered by the Framework as they do not meet the definition of assurance engagements Engagement where practitioner and responsible party agree to apply principles of Framework with no intended users other than responsible party = Practitioner's report includes a statement restricting use of the report to the responsible party</p> Signup and view all the answers