assuranceengagements

Assurance engagements are professional services in which a practitioner assesses information or a process and provides an assurance report intended to enhance confidence among users about the reliability of that information. The subject matter of an assurance engagement can be financial or non-financial and may include financial statements, internal controls, compliance with laws and regulations, or sustainability and other non-financial performance information. The practitioner’s objective is to form a conclusion or opinion based on evidence obtained in accordance with applicable assurance standards.

Standards and scope: In many jurisdictions, assurance engagements are governed by international standards issued by the IAASB, principally ISAE 3000 (Revised) which provides general requirements for assurance engagements, along with sector-specific or subject-matter standards that tailor procedures and reporting. The term includes both reasonable assurance engagements, which provide a high but not absolute level of assurance, and limited (negative) assurance engagements, which provide a lower level of assurance.

Engagement process: The practitioner must be independent and follow a planned, systematic approach. The engagement involves planning, risk assessment, testing, gathering evidence, and evaluating whether the subject matter information meets the relevant criteria. A formal assurance report is issued, describing the subject matter, criteria, procedures performed, and the conclusion.

Outcomes and limitations: An assurance engagement results in an opinion or conclusion that is intended to increase user confidence. It does not guarantee future results, and the conclusion is subject to inherent limitations such as evidence availability and the nature of the engagement.