Reviewer for Auditing Theory PART 2
Assurance engagements performed by professional accountants are intended to enhance
the credibility of information about a subject matter by evaluating whether the subject
matter conforms in all material respects with suitable criteria, thereby improving the
likelihood that the information will meet the needs of an intended user.
Services performed by professional accountants that are NOT assurance engagements
include the following:
Agreed-upon procedures
Compilation of financial or other information
Preparation of tax returns where no conclusion is expressed, and tax consulting
Management consulting
Other advisory services
The objective of an assurance engagement is for a professional accountant to evaluate or
measure a subject matter that is the responsible of another party against identified
suitable criteria, and to express a conclusion that provides the intended user with a level if
assurance about the subject matter.
Assurance services differ from consulting services in that they:
Focus on enhancing the credibility of information rather than providing advice.
Typically involve situations in which one party wants to monitor another.
Consulting services are usually two-party engagements that focus on providing advice
on how to use the information for better outcomes.
An assurance engagement involves three (3) separate parties:
A practitioner,
A responsible party, and;
Intended users
Elements of assurance engagements
A three-party relationship involving:
A practitioner,
A responsible party, and;
Intended users
A subject matter
Suitable criteria
Sufficient appropriate evidence
An assurance report
The framework defines and describes the elements and objectives of assurance
engagements to which Philippines Standards on Auditing (PSAs), Philippines Standards
on Review Engagements (PSREs), and Philippine Standards on Assurance Engagements
(PSAEs) apply. The framework does not itself establish standards or provide procedural
requirements for the performance of assurance engagements. PSA, PSRE, and PSAE
contain basic principles, essential procedures, and related guidance, consistent with the
concepts in the framework, for the performance of assurance engagements.
Assurance engagements performed by professional accountants are intended to enhance
the credibility of information about a subject matter by evaluating whether the subject
matter conforms in all material respects with suitable criteria, thereby improving the
likelihood that the information will meet the needs of an intended user.
Services performed by professional accountants that are NOT assurance engagements
include the following:
Agreed-upon procedures
Compilation of financial or other information
Preparation of tax returns where no conclusion is expressed, and tax consulting
Management consulting
Other advisory services
The objective of an assurance engagement is for a professional accountant to evaluate or
measure a subject matter that is the responsible of another party against identified
suitable criteria, and to express a conclusion that provides the intended user with a level if
assurance about the subject matter.
Assurance services differ from consulting services in that they:
Focus on enhancing the credibility of information rather than providing advice.
Typically involve situations in which one party wants to monitor another.
Consulting services are usually two-party engagements that focus on providing advice
on how to use the information for better outcomes.
An assurance engagement involves three (3) separate parties:
A practitioner,
A responsible party, and;
Intended users
Elements of assurance engagements
A three-party relationship involving:
A practitioner,
A responsible party, and;
Intended users
A subject matter
Suitable criteria
Sufficient appropriate evidence
An assurance report
The framework defines and describes the elements and objectives of assurance
engagements to which Philippines Standards on Auditing (PSAs), Philippines Standards
on Review Engagements (PSREs), and Philippine Standards on Assurance Engagements
(PSAEs) apply. The framework does not itself establish standards or provide procedural
requirements for the performance of assurance engagements. PSA, PSRE, and PSAE
contain basic principles, essential procedures, and related guidance, consistent with the
concepts in the framework, for the performance of assurance engagements.
