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Unformatted text preview: surance clientis relevant to the evaluation of the firm’s independence of
the client, the assuranceteam shall include the related entity when evaluating threats to independence
andwhen necessary applying safeguards. These matters are not specifically addressed in
As explained in the International Framework for Assurance Engagements issued by theInternational
Auditing and Assurance Standards Board, in an assurance engagement, theprofessional accountant in
public practice expresses a conclusion designed to enhance thedegree of confidence of the intended users
other than the responsible party about theoutcome of the evaluation or measurement of a subject matter
against criteria. 109 Assertion-Based Assurance Engagements
In an assertion-based assurance engagement, the evaluation or measurement of thesubject matter is
performed by the responsible party, and the subject matterinformation is in the form of an assertion by the
responsible party that is madeavailable to the intended users.
In an assertion-based assurance engagement independence is required from theresponsible party, which is
responsible for the subject matter information and may beresponsible for the subject matter.
In those assertion-based assurance engagements where the responsible party isresponsible for the subject
matter information but not the subject matter,independence is required from the responsible party. In
addition, an evaluation shallbe made of any threats the firm has reason to believe are created by interests
andrelationships between a member of the assurance team, the firm, a network firm andthe party
responsible for the subject matter.
Direct Reporting Assurance Engagements
In a direct reporting assurance engagement, the professional accountant in publicpractice either directly
performs the evaluation or measurement of the subject matter,or obtains a representation from the
responsible party that has performed theevaluation or measurement that is not available to the intended
users. The subjectmatter information is provided to the intended users in the assurance report.
In a direct reporting assurance engagement independence is required from theresponsible pa...
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This document was uploaded on 04/03/2014.
- Spring '14