Three-party assurance relationship
An assurance engagement involves a practitioner, a responsible party and intended users. The responsible party is responsible for the underlying subject matter; intended users are those for whom the assurance report is prepared. Other roles, such as measurer or engaging party, may be performed by one of those parties or another party.
Worked example
Management prepares an emissions statement, an independent practitioner examines it and investors use the assurance report.
Common mistake
Do not assume the practitioner prepares the subject matter or that the engaging party and responsible party must always be separate.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |