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ASSURANCE

ENGAGEMENT and
RELATED SERVICES
CHARLENE JADE MANESE
4 T H BSA
ASSURANCE ENGAGEMENT
According to the IFAC, an assurance engagement is:"An
engagement in which 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.
Four types of services that are normally
performed in connection with the entity’s
financial statements

oAudit
oReview
oCompilation
oAgreed-upon Procedures
Audit of Financial Statement
Enables the auditors to express an opinion on the entity's financial
statement.
Review of Financial Statement
A review engagement os conducted to provide limited assurance that there are
no material modifications that should be made to the financial statements for
them to be in conformity with the financial reporting framework.

a. Level of assurance- the auditor does not provide the same level of assurance as
provided on audit engagement because of the limited procedures performed
when reviewing the the financial statement.
b. Procedure to be performed- the auditor usually do not performed many
procedures.
Review of Financial Statement
c. Reporting Responsibility- the report should contain a clear written expression on
negative assurance.- the auditor should review and assess the conclusion dawn
from the evidence obtain as the basis for the expression of negative assurance.
◦ The unmodified Review Report- it is issued based on the evidence obtain by
the auditor that there are no material modifications made to the financial
statements in conformity with philippines Financial Reporting Standard.
◦ Modification of the Review Report
a) Material misstatement
b) Scope and limitation
Compilation of Financial Statement
The entity's turn to professional accountants to assist them in the preparation
and presentation of their financial statements.- The objective of the
compilation engagement is for the accountant to use accounting expertise, as
opposed to auditing expertise, to collect, classify and summarize financial
information.
Compilation of Financial Statement
a. Level of Assurance.- The procedures employed in a compilation
engagement are not designed and do not enable the accountant to express any
assurance on the financial information.
b. Procedures to be Performed.- the accountant should read the compiled
information and consider wether it appears to be appropriate in form and free
from obvious material misstatements.
Compilation of Financial Statement
The accountant is not ordinarily required to:
a. Make any inquiries of management to assess the reliability and
completeness of the information provided;
b. Assess internal controls.
c. Verify any matters; or
d. Verify any explanations.