Fundamentals of Assurance

Services
By : Abigail Ibañez
“The relevance and reliability of information is
critical for making the best decision in a given
situation.”

DECISION
• Assure means to give confidence or conviction
• Assurance, in audit, refers to the auditor’s
satisfaction as to the reliability of an assertion
being made by one party for use by another
party.
 Elements of Assurance
Engagements(TASSA)
• Three party relationship
• Appropriate subject matter
• Suitable criteria
• Sufficient appropriate evidence
• Assurance report that is written
 Three Party Relationship
• Practitioner – broader than the term
“auditor” can be from other fields of study.
– Can use the works of persons from other
disciplines more commonly known as “experts”
Responsible Party – responsible for the
subject matter or subject matter
information.
 Three Party Relationship
• Intended users – these are the persons to
whom the practitioner prepares the assurance
report.

• Note: The responsible party can be one of the

intended users
 Fundamentals of Assurance Services
• Forms of conclusion
– Reasonable Assurance
• In our opinion internal control is effective, in all
material respect based on XYZ criteria
– Limited Assurance
• Based on our work described in this report, nothing has
come to our attention that causes us to believe that
internal control is not effective, , in all material respect
based on XYZ criteria
 Fundamentals of Assurance Services
• Types of Assurance Engagement
• Limitations of Assurance Engagement
• Non Assurance Services
 Auditing Defined
• Auditing is a systematic process of objectively
obtaining and evaluating evidence regarding
assertions about economic actions and events
to ascertain the degree of correspondence
between these assertions and established
criteria and communicating the results to
interested users
 Audits of Historical Financial
Information
• Types of Audit

Financial Statement Audit Compliance Audit

Assertions Made FS are fairly stated Orgn has complied with laws, regulations and contracts
Established Criteria PFRS Laws, regulations and contracts
Content of Report Opinion whether FS are fairly stated Degree of compliance w/laws
Auditor External Auditor Government Auditor
 Audits of Historical Financial
Information
Operational Audit
Assertions Made Orgn activity are efficient and effective
Established Criteria Objectives set by BOD
Content of Report Recommendation on how to improve efficiency and effectiveness
Auditor Internal Auditor
 Audits of Historical Financial
Information
• Information Risk
– Definition
– Why does it exist?
– How to reduce?