Whether a particular engagement is an assurance

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41. Whether a particular engagement is an assurance engagement will depend upon whether it exhibits all the following elements, including: I. A three party relationship involving a professional accountant, a responsible party, and an intended user II. A subject matter III. A suitable criteria IV. An engagement process V. A conclusion a. I, II, III, IV and V c. I, II, and III b. I, II, III and V d. I, II, III and IV 42. There is a broad range of engagements to provide a high or moderate level of assurance. Such engagements may include I. Engagements to report on a broad range of subject matters covering financial and non-financial information II. Attest and direct reporting engagements III. Engagements to report internally and externally IV. Engagements in the private and public sector 43. Not all engagements performed by professional accountants are assurance engagements. Other engagements frequently performed by professional accountants that are not assurance engagements include the following, except 44. For assurance engagements provided to an audit client, the following should be independent of the client a b c d The members of the assurance team Yes Yes Yes Yes The firm Yes Yes No No Network firms Yes No No Yes 45. For assurance engagements provided to clients that are not audit clients, when the report is not expressly restricted for use by identified users, the following should be independent of the client a b c d The members of the assurance team Yes Yes Yes Yes The firm Yes Yes No No
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Page 8 of 21 Network firms Yes No No Yes 46. For assurance engagements provided to clients that are not audit clients, when the assurance report is expressly restricted for use by identified users, the following should be independent of the client a b c d The members of the assurance team Yes Yes Yes Yes The firm Yes Yes No No Network firms Yes No No Yes 47. The firm should be independent of the client in the following engagements a b c d Assurance engagements provided to an audit client Yes Yes Yes Yes Assurance engagements provided to clients that are not audit clients, when the report is not expressly restricted for use by identified users Yes Yes No No Assurance engagements provided to clients that are not audit clients, when the assurance report is expressly restricted for use by identified users Yes No No Yes 48. Independence is potentially affected by I. Self-interest threat IV. Familiarity threat II. Self-review threat V. Intimidation threat III. Advocacy threat
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  • Spring '10
  • Mr.Cula
  • Accounting, Accountant, Certified Public Accountant

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