Audit and Assurance Essentials: For Professional Accountancy Exams, + Website

CHAPTER 10

OTHER ASSURANCE ENGAGEMENTS

Covering: Types of Other Assurance Engagement, Key Performance Indicators, Social and Environmental Reporting and ISAE 3410 Assurance Engagements on Greenhouse Gas Statements, ISAE 3400 The Examination of Prospective Financial Information, ISAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus.

Why do I need to read this section?

Prospective financial information, social and environmental reporting, greenhouse gas statements and pro-forma financial information are areas that are neither as obscure nor as complex as their names might appear. Students who become general practitioners are likely to encounter at least some of them more often than they might think. Prospective financial information, in the form of financial forecasts and projections, is particularly common in applications for loans and funding. Understanding how specific examples of this type of assurance engagement work makes it much easier to comprehend assurance engagements generally.

Social and environmental reporting is a rapidly developing area and, while it is still largely confined to very large companies, it is likely to become the norm for smaller entities over time.

What is important in this section?

• Understanding that in all cases, auditors and practitioners report on information that is the responsibility of management.
• Understanding that reasonable and limited assurance engagements can be performed ...