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Unformatted text preview: sentation from the responsible party that has performed the evaluation or measurement
that is not available to the intended users. The subject matter information is provided to the
intended users in the assurance report. Assertion-based Assurance Engagements
291.17 In an assertion-based assurance engagement, the members of the assurance team and the firm
shall be independent of the assurance client (the party responsible for the subject matter
information, and which may be responsible for the subject matter). Such independence
requirements prohibit certain relationships between members of the assurance team and (a)
directors or officers, and (b) individuals at the client in a position to exert significant influence
over the subject matter information. Also, a determination shall be made as to whether threats
to independence are created by relationships with individuals at the client in a position to exert
significant influence over the subject matter of the engagement. An evaluation shall be made of
the significance of any threats that the firm has reason to believe are created by network firm 8
interests and relationships. 291.18 In the majority of assertion-based assurance engagements, the responsible party is responsible
for both the subject matter information and the subject matter. However, in some engagements,
the responsible party may not be responsible for the subject matter. For example, when a 6
8 “Internal Control - Integrated Framework” The Committee of Sponsoring Organizations of the Treadway Commission.
“Guidance on Assessing Control – The CoCo Principles” Criteria of Control Board, The Canadian Institute of Chartered Accountants.
See paragraphs 290.13 to 290.24 for guidance on what constitutes a network firm. 211 professional accountant in public practice is engaged to perform an assurance engagement
regarding a report that an environmental consultant has prepared about a company’s
sustainability practices for distribution to intended users, the environmental consultant is the
responsible party for the subject matter information but the company is responsible for the
subject matter (the sustainability practices).
291.19 In assertion-based assurance engagements where the responsible party is responsible for th...
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This document was uploaded on 04/03/2014.
- Spring '14