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Audit
Assurance Slides
| Question | Answer |
|---|---|
| audit is a a subset of | assurance |
| assurance engagement | practitioner aims to obtain sufficient appropriate evidence to express conclusion designed to enhance degree of confidence of intended users about subject matter information |
| assurance services | independent services that improve quality of information |
| can be performed by | CA or other professions |
| three party relationship | the practitioner (auditor) responsible party (directors) intended users (shareholders) |
| appropriate underlying subject matter e.g., | financial statements |
| suitable criteria e.g., | IFRS standards |
| a written assurance report contains | an opinon |
| suitable criteria guide | relevant, complete, reliable, neutral, understandable |
| reasonable assurance | positive assurance and high assurance |
| limited assurance | negative / lower assurance - not found anything wrong but not saying everything is right |
| attestation services | a type of assurance in which audit firm issues a report about reliability of assertion of other party |
| direct reporting engagement | the professional accountant expresses a conclusion on subject matter based on suitable criteria regardless of if responsible party has made written assertion about subject matter |
| two aspects of double materiality | - inside out (impact) : comparing activities affecting users of accounts and services - outside in (financial) : how country, location, regulation affects the firm |
| increased demand for | reporting and assurance |
| who provides sustainability assurance | - statutory auditor - other audit firms - other providers of sustainbaility assurance |
| FRC view on statutory auditor providing sustainability assurance | no issue - seen as 'natural progression' of scope of audit |
| difficulty regarding non-statutory auditor providing sustainability assurance | not the same knowledge of systems and controls within the firm - and general knowledge of firm |
| FRC want to ensure UK Market | is working effectively |
| focus of FRC study in 2024 | how well is market functioning - is it delivery desired results |
| three broad themes of FRC study in 2024 | 1. choice of provider and competition 2. market capacity, opportunities and barriers to entry / expansion 3. regulatory framework and how changing international requirements could impact UK |
| results from FRC market study, 2024 | - wide variety and choice of providers in UK -> concerns over consistency of quality of assurance - stakeholders concerns regarding domination and choice - concerns about immaturity of market and lack of clarity and regulatory position |
| how could the lack of framework impact market | -> lack of regulation will hinder quality and consistency of assurance -> hindering decision making |
| audit firms movement in sustainability assurance | transfer of skills and move into new market |
| what approach do consultant assurors provide | value added |
Created by:
amyperston
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