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Auditing Review AT.01 - The Practitioner's Engagement

The document discusses key elements and differences between attestation engagements and direct engagements. An attestation engagement involves a third party (the practitioner) evaluating or measuring a subject matter against criteria. A direct engagement involves the responsible party performing the evaluation. Option a is the most likely example of a direct engagement since management prepares the sustainability report.

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Haru Haru
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107 views

Auditing Review AT.01 - The Practitioner's Engagement

The document discusses key elements and differences between attestation engagements and direct engagements. An attestation engagement involves a third party (the practitioner) evaluating or measuring a subject matter against criteria. A direct engagement involves the responsible party performing the evaluation. Option a is the most likely example of a direct engagement since management prepares the sustainability report.

Uploaded by

Haru Haru
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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11.

In an attestation engagement, who primarily performs the evaluation and measurement of subject
matter?

12. There are two types of assurance engagements according to structure: attestation engagements and
direct engagements. The main difference between the two lies in who is measuring, or evaluating, the
underlying subject matter against the criteria. Which of the following is the most likely example of a
direct reporting engagement?

a. Responsible party
b. Practitioner
c. Third party
d. The public

a. A review of a sustainability report, which has been prepared by management.


b. A review of the effectiveness of a company's system of internal controls. The practitioner would
evaluate the internal controls, and then issue an assurance report explaining the outcome of the review.
c. An audit of annual financial statements.
d. A review of interim financial statements.
Auditing Review AT.01 – The Practitioner’s Engagement
3|Pagewww.prtc.com.ph
13. Attestation is any service that requires a CPA firm to issue a report about the reliability of an assertion
that is made by another party. Which of the following elements is the critical component that
distinguishes an attest engagement from other forms of assurance engagements?

14. Which of the following refers to “criteria” element of assurance engagement?

15. Which of the following statements is incorrect regarding the three party relationship element of
assurance engagement?

16. The subject matter of an assurance engagement may take many forms, including:

17. The subject matter of an assurance engagement may take many forms, including:

18. The characteristics for determining whether criteria are suitable include:
19. Assurance engagements do not include consulting engagements. However, assurance and consulting
engagements have similarities because they are delivered using a similar body of knowledge and skills.
Assurance engagements differ from consulting engagements in which of the following ways?

20. Which of the following engagements may be performed by a practitioner who is not independent of
the client?

a. An accountable party
b. A written assertion
c. A subject matter
d. An accountability relationship
Elements of an Assurance Engagement
a. Benchmarks used to evaluate or measure the subject matter.
b. Information obtained by the practitioner in arriving at the conclusions on which the opinion is based.
c. Contains a conclusion that conveys the assurance obtained about the subject matter information.
d. The subject matter, and subject matter information (assertion), of an assurance engagement.

a. The intended user is generally, but may not be, the addressee of the professional accountant’s report.
b. The responsible party and the intended user will often be from separate organizations.
c. The responsible party may also be one of the intended users.
d. The intended user(s) is(are) always limited to the addressee of the professional accountant’s report
a. b. c. d.
Nonfinancial Yes Yes Yes No
performance
or condition
Behavior Yes Yes Yes Yes
Financial Yes Yes No Yes
performance
or condition
Physical Yes No No No
characteristi
cs
Systems and Yes No Yes Yes
Processes

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