An assurance engagement will involve three separate parties;
– The intended user who is the person who requires the assurance report.
– The responsible party, which is the organisation responsible for preparing the subject matter to be reviewed.
– The practitioner (i.e. an accountant) who is the professional who will review the subject matter and provide the assurance.
A second element is a suitable subject matter. The subject matter is the data that the responsible party has prepared and which requires verification.
Suitable criteria are required in an assurance engagement. The subject matter is compared to the criteria in order for it to be assessed and an opinion provided.
Appropriate evidence has to be obtained by the practitioner in order to give the required level of assurance.
An assurance report is the opinion that is given by the practitioner to the intended user and the responsible party.
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