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Hi,
The AA syllabus requires us to describe the types of assurance engagement.
The BPP book describes the two types of assurance as external audit and review. While the Kaplan book describes the two types as Reasonable and limited assurance engagement.
My question – Who is correct?
Please shed some light. New to audit.
Many thanks
A warm welcome to my forum!
Short answer – they are both correct.
As you will see in our OpenTuition notes – “reasonable” and “limited” described two levels of assurance (see the bottom of page 8 for examples).
Whereas “audit” and “review” describe the corresponding types of engagement.
If you look at the illustrative example of the auditor’s report in Chapter 5 – you will see on the 2nd page in the “Auditor’s Responsibilities for the Audit of the financial statements” section (top of page 33). the reference to reasonable assurance.
Anything less than an audit – such as a review engagement – CANNOT give the same level of assurance – hence the expression “limited assurance”.
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