ACCT 107 Lecture Notes - Lecture 15: Assurance Services, Financial Statement, Income Statement
21 Oct 2020
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Document Summary
An assurance engagement is an independent professional service in which the assurance provider expresses a conclusion on the outcome of an evaluation or measurement of a subject matter against criteria. Any engagement that fulfills the following criteria is an assurance engagement: Assurance and non-assurance services offered by public accounting firms. Many entities have audits done, often to support financing. Provides only moderate assurance, rather than high assurance as in the case of an audit. These engagements are audits of specific income statement or balance sheet accounts. Audit of financial information other than financial statements companies. Review of historical financial statements engagement. (e. g. , sales, receivables, inventory) or audits of a single financial statement. Audit of effectiveness of internal control over financial reporting. There are almost no limits on what nonfinancial information a public accountant can provide assurance services for. Assurance services related to nonfinancial information are not the sole domain of public accounting firms.
