Quick Answer: What is an assertion based engagement?

What is the difference between assertion-based engagement and direct reporting engagement?

The subject matter information is provided to the intended users in the assurance report. These engagements are called “direct reporting engagements”. In an assertion-based engagement, is responsible for the subject matter information (the assertion), and may be responsible for the subject matter.

What is direct reporting engagement?

In a direct (direct reporting) engagement, the responsible party does not present the subject matter information in a report in a direct engagement. Instead the practitioner reports directly on the subject matter and provides the intended users with an assurance report containing the subject matter information.

What does attestation engagement mean?

Attestation engagement.

An examination, review, or agreed-upon procedures engagement performed under the attestation standards related to subject matter or an assertion that is the responsibility of another party.

What is meant by an assurance engagement?

“Assurance engagement” means 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.

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What is the difference between attestation and assurance?

*Assurance services are a broad category of services designed to improve the quality of decision making by improving confidence in the information on which decisions are made. *Attestation services are a subcategory of assurance services. They require independence and result in a report.

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 are direct engagements?

A direct engagement is an assurance engagement in which the practitioner evaluates the underlying subject matter against applicable criteria and aims to obtain sufficient appropriate evidence to express, in a written direct assurance report, a conclusion to intended users other than the responsible party, about the …

Who is the responsible party in an assurance engagement?

The three parties typically involved in an assurance engagement are: the responsible party, the users and the practitioner. The responsible party performs operations or provides information for the benefit of or relevant to users. This party is responsible for the subject matter over which assurance is sought.

What is the purpose of an attestation engagement?

An attestation engagement is an arrangement with a client where an independent third party investigates and reports on subject matter created by a client. Examples of attestation engagements are: Reporting on financial projections made by a client. Reporting on pro forma financial information formulated by a client.

What should be performed on an attestation engagement?

On the other hand, performing attest services involves gathering evidence to support the subject matter or the assertion and objectively assessing the measurements and com- munications of the responsible party.

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What is the most common type of attest engagement?

3. What is the most common type of attest engagement? What is most frequently being “asserted” by management on this type of engagement? –A financial statement audit.