Revised Code of Ethics in the Phils - 2010

Direct reporting assurance engagements in a direct

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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 this interpretation. 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.

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