What is an assurance engagement?
Assurance engagement is a kind of service engagement (arrangement) in which a person gives his opinion on speciļ¬c information.
The person giving an opinion is called a practitioner.
The practitioner is usually appointed by the intended user, who is the person who will be using the information.
The āSpeciļ¬c Informationā is prepared by another party known as the responsible party.
For expressing an opinion on āspeciļ¬c informationā the practitioner will examine and will obtain suļ¬cient and appropriate evidence
The practitioner evaluates the speciļ¬c information against a standard benchmark or suitable criteria and will obtain suļ¬cient and appropriate evidence and then give his opinion on whether the speciļ¬c information is as per the suitable criteria or not.
What is Auditing?
Auditing is an assurance service, in which auditor (The person who conducts audit) gives an opinion on ļ¬nancial information.
In auditing
Auditor is the practitioner
Financial information is the āSpeciļ¬c informationā or the āSubject Matterā on which auditor gives his opinion.
The Persons running the entity whose audit is being conducted are responsible for preparing ļ¬nancial information are known as responsible party.
The users of the ļ¬nancial statements, for example in case of a company the shareholders of the company, are the intended users.
The auditor will examine the ļ¬nancial information against the ļ¬nancial reporting framework and will obtain suļ¬cient and appropriate audit evidence and will express his opinion on the basis of suļ¬cient and appropriate audit evidence that whether the ļ¬nancial information is prepared as per the ļ¬nancial reporting framework.
