Assurance engagement vs. Auditing vs.

Consulting services

ASSURANCE ENGAGMENT
- Evaluating the audit’s report and verify if it is indeed authentic/ credible…
- Assessment of the audit’s report

AUDITING
- Process of looking at the entity’s FS, internal processes, and other areas of concern
- An “audit” will tell us if there is misrepresentation, misuse of funds, and possible fraud

CONSULTING SERVICES
- Non-assurance engagement
- Services performed by providing advices/ suggestions on how to use information for
better future outcomes…

Nature of assurance engagement

- “Assurance engagement” means an engagement in which a practitioner expresses a
conclusion designed to enhance the degree of confidence of the intended users other than
the responsible party about the outcome of the evaluation or measurement of a subject
matter against criteria.

Objective/s of assurance engagement

- Intended to enhance the credibility of the information about the result of audit…
- To provide reasonable/ moderate level of assurance whether the entity’s assertions
(subject matter being audited) conform w/ suitable criteria

Elements of assurance engagement

1. Three party relationship (practitioner, responsible party, and intended users)
2. Appropriate subject matter
3. Suitable criteria
4. Sufficient appropriate evidence
5. Written assurance report