Which of the following would be an assurance engagement?
Assurance engagement is an engagement of a practitioner to issue a report on subject matter that is the responsibility of another party. Attestation and audit engagement are subset of assurance engagement.
What is assurance service engagement?
What is an assurance service engagement? An assurance service engagement entails independent professionals (i.e., usually CPAs or those working for CPA firms) working to improve the quality of information, or its content for decision-makers.
What is an example of an assurance service?
The most common example of assurance services are financial statement audits. … When a public accounting firm audits financial statements, they are making sure every number on the statements is accurate. They do this by testing transactions that make up each account.
What requirements are usually necessary to become licensed as a certified public accountant?
State licensing requirements vary, but the minimum standard requirements include passing the Uniform Certified Public Accountant Examination, 150 semester units of college education, and one year of accounting related experience. Continuing professional education (CPE) is also required to maintain licensure.
What are the five elements of an assurance engagement?
The five elements of an assurance engagement
- A three-party relationship, involving: the practitioner, a responsible party and intended users.
- Appropriate subject matter.
- Suitable criteria.
- Sufficient, appropriate evidence to support the conclusion.
- A conclusion contained within a written report.
What is the purpose of assurance engagement?
The objective of an assurance engagement is to obtain sufficient appropriate evidence to express a conclusion, providing reasonable or limited assurance, as to whether the audited body has complied with the specified requirements of the appropriate legislation (the ‘criteria’) in all material respects.
What are the two types of assurance engagement?
Under this Framework, there are two types of assurance engagement a practitioner is permitted to perform: a reasonable assurance engagement and a limited assurance engagement.
What are the two types of assurance services?
The different types of assurance services include auditing and financial projections.
- Auditing Assurance Service. …
- The Audience for Assurance Services. …
- Financial Assurance Services. …
- Non-Financial Assurance Services.
What are the types of assurance services?
In order of increasing level of rigor, accountants generally offer three types of assurance services: compilations, reviews and audits. What’s appropriate for your company depends on the needs of creditors or investors, as well as the size, complexity and risk level of your organization.
What is an assurance activity?
Assurance Activities are scheduled as part of an annual planning process that considers identified and emerging issues.
What are non assurance services?
NON-ASSURANCE SERVICES In non-assurance services, CPAs issue reports that do not express an opinion or conclusion on the subject matter (for example, financial statements). … In an agreed-upon procedures engagement, the CPA issues a report, but does not express an opinion or a conclusion on the subject matter.
What is the difference between assurance and consulting services?
Assurance activities certainly include the traditional internal audit, but also include other services. … Consulting activities, though new to the definition and the Professional Standards, include activities that have long been performed as part of the internal audit function’s work.