Activity 3: Skill building cate eee me ae to auait their financial statements forthe ra 2019. During the engagement, the auditors requested diferent coals ran Eee and Plant and equipment lapsir the 11.0) to suf \eir Cor 1. ulated i | Se ee er it, athe ‘end of the engagement, KPC issued * the PPE lapsing using excel file and found no error to auditors opinion stating that there is reasonable assurance to conclude tt statement prepared in accordance with PFRSs. Afterwards, the financial stalements with ‘accompanying auditors report was used during the stockNolders meeting. Dalry van unas cinsaon | 3080 Compuor | 1500] 3 [svete | osawaoi2 $00 1000] see Fumauro | 2500] 3 ]Sva-ine | owsann2 758 ate] ta Fawies | 70] 10 [Seaieine roa) ean? © Fe) Based on the scenario above, let te provide the following: 1. Practitioner Kc 4 Co. 2 Responsible party q : : The orccontamt o¢ Deutsche Inc 3. User a = 2 Deutsche Inc 4, Suitable Criteria The pteanelal chulemete were pregarcd in accordance Ne m with Prep 5, Evidence The ginanial strlements including the cAeewmimt ghowm im lide r ‘ ciquee 10 6 Written report o e The teousnwe op, KPC sp mn ane oe 7. Appropriate subject matter |Flg 4o be reported He ctabboldert — reekagy Ff 2. What kind of assurance engagement it is according to its level of assurance. Why? robes = Rescerable asteranne buns op the gastos . Activity 4: What | Know Chart Now let us check your final understanding of practitioner's engagements. | hope that everything ab the topic is clear to you. This time you must fill out the What | Learned column.. compilation engagements ne era a an Jed for in audit renee C. compilation engagements _B. review engagement D. None Reasonable assurance is provided for in : 2 ‘A_audit engagement C. compilation engagements ie ment D. None 4. Criteria lpetarautodied in laws and regulation, or issued by authorized or recognized bodies of { experts that follow a transparent due process are called A. Suitable criteria Established criteria C. Specifically developed criteria D. General criteria 5. How many separate parties are involved in an assurance engagement? A2 C4 os Ds 6. Which of the following engagement is covered by the Framework for Assurance Engagements? ‘A Consulting engagements B. Agreed-upon procedures Ee Preparation of tax returns (independent financial statements audit 7. The following are assurance engagements, except A. audit engagement CC-tompilation engagements B. review engagement D. Assertion-based engagement 8. A summary of findings rather than assurance is most likely to be included in a/an BmAgreed-upon procedures B. Compilation report C. Examination report D. Review report 9. Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of FS? A. Iti dificult to prepare financial statements that fairly present a company's financial position and changes in cashflows without the expertise of an independent auditor. __B.Itis the managements responsibility to seek available independent aid in appraisal of financial information shown in the FS CO The opinion of an independent party is needed because a company is not likely to be considered objective with respect to its own FS D. It is customary courtesy that all stockholders of the company receive an independent report on management stewardship in managing the affairs of the business. 10. Unlike consulting services, assurance services ‘A. Make recommendations to management B. Report on how to use the information port on the quality of information D. Are two-party contract.Activity 6: Think about learning! ©) + Please read again the learning targets for the day. Were you able to achieve those | learning t ityes, what helped you achieve them? If no, what is the reason for not achieving them? {had Hippel i poo eg ealpat= = 2 In today's session, which part of the lesson was least clear to you? Ve ener FAQs 1. Why is there no absolute assurance? yen dlcohol can only kill 99.99% of germs, Kidding aside, absolute assurance is almost impossible to ghieve because of constraint such as time and resources. Imagine, if you would be auditing Savemore Market and you have to provide absolute assurance, you have to check each and every transaction the entity made to validate those and it will require too much time, money and manpower to do that, 2. What is the difference between auditor and accountant? ‘nile accountant looks haggard, auditors looks dried, Char! There is a saying that the auditors’ job Starts after the accountants’ job ended, But in practice it does not necessarily apply. Accountants (Responsible Party) are responsible for the preparation of financial statements while auditors (Practitioner) verify its accuracy.