What is an ‘Assurance Engagement’?
The International Auditing and Assurance Standards Board (IAASB) defines assurance engagements in the International Framework for Assurance Engagements as follows: “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 […]
Is there a difference between an Internal Auditor and an External Auditor?
Yes. Both of these have their own unique qualities that set them apart. Auditing may primarily be broken down into two categories: internal and external. An internal audit department is staffed by employees of that entity who will provide internal audit functions that benefit the entity as a whole. However, it is common for businesses […]
What are the Overall Purpose and Main Features of an Audit?
The general objective of an audit is discussed in ISA 200 Overall Objective of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing. According to ISA 200, the following objectives must be met for an audit of financial statements to be considered successful: “To obtain reasonable assurance about […]
What happens if Family or Close Relationships exist between an Auditor and the Client?
Where family or close relationship ties between an auditor and their client, three different sorts of conflicts might arise that threaten the auditor’s independence and objectivity. These threats are as follows: Example: Self-Review Threat An accountant suggested a new strategy to an organisation she prepared the accounts for. She has since been asked to examine […]
Can a Professional Accountant accept Gifts from a Client?
It is not uncommon for clients to offer gifts and/or hospitality to professional accountants (including auditors). Professional Accountants should ensure that accepting such gifts and hospitality does not violate the essential principles before doing so. The client’s offer of gifts and hospitality, its type and value, and the client’s overarching purpose all play a role […]
