What is assurance engagement?
Assurance engagement is an engagement performed by a practitioner to enable himself to express an opinion about the measurement of subject matter against a criteria. Practitioner’s expression of opinion raise the confidence of the users over the measurement as to whether measurement of subject matter is a fair statement keeping the criteria applicable under consideration. Replacing the formal […]
What is an Assurance engagement in auditing?
Assurance engagement is an engagement performed by a practitioner to enable himself to express an opinion about the measurement of subject matter against a criteria. Practitioner’s expression of opinion raise the confidence of the users over the measurement of subject matter subject to the criteria applicable under consideration. To summarize the above formal definition, read through the […]
What are different types of audit reports or auditor’s reports?
The nature and type of reports issued by the practitioner depends on the type of assurance engagement. However we will be speaking strictly in context of audit engagement as the question is about the types audit reports. We can classify audit reports in number of ways but usually audit reports are classified n TWO broad […]
What is the difference between Objective of audit and Purpose of audit
Although the terms objective and purpose are mostly used to mean the same and are used interchangeably but under International Auditing Standards (ISAs) the purpose of audit and objective of audit is NOT the same thing. Under ISAs the term purpose of audit simply means why audit is conducted. Whereas objective of audit means what […]
What is the difference between Material effect and Pervasive effect in auditing?
The misstatements and their effects of great importance and auditor consider these effects for their implications on financial statements and auditor’s report. The auditor considers whether uncorrected and undetected misstatements have material and pervasive effect or just material but not pervasive while drafting auditor’s report. Although auditor considers these two characteristics of misstatements collectively to […]
What is Emphasis of Matter paragraph and when is it used?
Emphasis of matter paragraph, as the name suggests, is a paragraph that is included by the auditor in his report (audit report) to direct the attention of users of financial statements to a matter that has been discussed appropriately in the financial statements (usually a disclosure). The reason why auditor invites the attention of users […]
What is the difference between modified and unmodified audit report?
Audit report is said to be unmodified if auditor releases such report which has the exactly the same format or contents as are mentioned for the report which should be given if financial statements are giving true and fair view. Under IAASB auditing standard ISA 700 (read para 20 through 40), the format of the […]
What is the difference between unmodified opinion and unqualified opinion?
To me there is no difference between the two terms as they concludes one and the same thing. Auditing Standards use both terms to mean one and the same thing. But it has been observed that the term Unmodified opinion is used more often in standards instead of Unqualified opinion. Some authors try to differentiate […]
Does Modified report always have Modified opinion?
No. Modified reports does not necessarily means modified opinion also. Lets explain it further. Modified opinion means either of the following: Qualified opinion Adverse opinion Disclaimer Therefore, whenever we refer to modified opinion we mean either of these three. And if the modification is necessary in the opinion then report also requires necessary modifications which […]
What is the difference between Negative assurance, Positive assurance, Negative opinion and Negative report?
Difference between Negative assurance and Positive assurance Many students get confuse in these things and mostly it is because books usually use such terminologies which prevail in the business world which are most of the time shortened up and thus sometimes lose their meanings. Lets start with Positive and Negative assurance. Many students think that […]
