David Alfonso

III-21
Sept. 29, 2020
Case Study Answers:
Case #1
Requirements:
1. Describe the factors to be considered by Juan in determining whether the criteria
is suitable.
The first factor is relevance, it is suitable when it contributes to the
conclusion and will affect the decision of users of information, and another is
completeness that requires the full disclosure of all important information about
the customer’s satisfaction. It is also important to measure its reliability that can
be determined when it is consistent to the way on how practitioners measures
and evaluates the customer’s satisfaction. Another factor is understandability is
when it is clear and does not lead to different interpretation and lastly the
neutrality, it should not be bias
2. If the engagement is assertion-based engagement, identify the different
structures that the engagement may take.
 The Seascapes Resort Inc. will measure its customer’s satisfaction and
provide an assertion to the intended users and to the firm itself.
 An entity other than Seascapes Resort Inc. will evaluate its customer’s
satisfaction and provide an assertion to the intended users and to the firm
3. If the engagement is a direct reporting engagement, identify the different
structures that the engagement may take.
 Juan is the one who will directly measure the customer’s satisfaction of
Seascapes Resort Inc.
 The Seascapes Resort Inc. will measure its customer’s satisfaction with a
written representation that measures its customer’s satisfaction through its
increase in peso sales and customer’s satisfaction rate which is the criteria
for measuring customer’s satisfaction. The representation is not available to
the intended users
Case #2
Parties involved
Assurance – Responsible Party, Practitioner and Intended Users
Consulting – Auditor and Activity management (Client)
Primary purpose
Assurance – enhance the credibility of the information about the subject matter
and evaluate whether the subject matter conforms in all material aspects with suitable
criteria.
Consulting – to provide independent advice, facilitation, or training services,
commonly at the specific request of the engagement customer
Focus
Assurance – improving the quality of information to the users and to help them on
making decision
Consulting – developing strategies and solutions on company’s critical issues
and opportunities
Output
Assurance – a conclusion or a written assurance report
Consulting – produce recommendation