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    Governance ARLY

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    Arly Kurt Torres
    The document discusses assurance engagements and the Auditing and Assurance Standards Council (AASC) in the Philippines. It defines assurance engagement, identifies the two types, and lists the five elements. It also discusses the four standards that comprise the AASC's Engagement Standards and which standard applies to different engagements like audits and reviews.

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    Governance ARLY

    Uploaded by

    Arly Kurt Torres
    14 views3 pages
    The document discusses assurance engagements and the Auditing and Assurance Standards Council (AASC) in the Philippines. It defines assurance engagement, identifies the two types, and lists the five elements. It also discusses the four standards that comprise the AASC's Engagement Standards and which standard applies to different engagements like audits and reviews.

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    The document discusses assurance engagements and the Auditing and Assurance Standards Council (AASC) in the Philippines. It defines assurance engagement, identifies the two types, and lists the five elements. It also discusses the four standards that comprise the AASC's Engagement Standards and which standard applies to different engagements like audits and reviews.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views3 pages

    Governance ARLY

    Uploaded by

    Arly Kurt Torres
    The document discusses assurance engagements and the Auditing and Assurance Standards Council (AASC) in the Philippines. It defines assurance engagement, identifies the two types, and lists the five elements. It also discusses the four standards that comprise the AASC's Engagement Standards and which standard applies to different engagements like audits and reviews.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Name: Arly Kurt B.

    Torres

    Assignment:

    1. What does AASC stands for? What is its function?

    In the Philippines, the Auditing and Assurance Standards Council (AASC) is the
    entity that is responsible for establishing and promulgating generally accepted auditing
    standards (GAAS). AASC pronouncements are currently mostly based on the
    International Auditing and Assurance Standards Board's standards and practice
    statements (IAASB). Standards and practice statements specific to each country are
    being developed.

    The AASC's major goal in adopting IAASB standards and practice statements is to
    achieve local GAAS conformity with IAASB pronouncements. This harmonization is
    expected to improve the dependability and acceptability of Philippine companies' audited
    financial statements. The Preface to Philippine Standards lays out the AASC's goals,
    structure, and working methods.

    2. What are the four standards that comprise the AASC’s Engagement Standards? 
    1. Philippine Standards on Auditing (PSAs)
    2. Philippine Standards on Review Engagements (PSREs)
    3. Philippine Standards on Assurance Engagement (PSAEs)
    4. Philippine Standards on Related Services (PSRSs)

    3. Identify the standards that cover each of the following engagements:

     Audit of historical financial information - Philippine Standards on Auditing (PSAs)

     Review of historical financial information - Philippine Standards on Review


    Engagements (PSREs)
     Assurance engagements dealing with subject matter other than historical financial
    information - Philippine Standards on Assurance Engagement (PSAEs)

     Engagements on agreed-upon procedures - Philippine Standards on Related


    Services (PSRSs)

    a. Define assurance engagement. 

    An assurance engagement is defined as 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.
    b. What are the 2 types of assurance engagement? Provide the definition to each.

    a). Reasonable assurance engagements are a type of assurance engagement in which


    the practitioner provides reasonable assurance. In these engagements, the practitioner
    gathers evidence that is sufficient and appropriate to draw reasonable conclusions.
    Once they do so, they conclude that the subject matter conforms in all material respects
    with identified suitable criteria.

    b). Limited assurance engagements are similar to reasonable assurance engagements.


    In these engagements, the practitioner collects sufficient appropriate evidence to draw
    limited conclusions. These conclusions are not subject to the same level of regulations
    as reasonable assurance engagements. It is different from reasonable assurance
    engagements where they draw reasonable conclusions.

    c. What are the 5 elements of an assurance engagement? 


    The five elements of an assurance engagement are:

    o A three-party relationship,
    o Appropriate subject matter.
    o Suitable criteria.
    o Sufficient, appropriate evidence to support the conclusion.
    o A conclusion contained within a written report.

    d. What are the three-parties involved in an assurance engagement?

    The three-parties involved in an assurance engagement are the practitioner, a


    responsible party and intended users.

    e. Provide at least 5 examples of common subject matter for an assurance engagement.


     Systems and Process
     Financial performance or conditions
     Behavior and Human resource practices
     Financial Information
     Compliance with regulations

    f. Provide 4 examples of non-assurance engagements. 


     Bookkeeping and accounting
     Tax services
     Certain management consultancy
     Other management consultancy

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