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...

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...

What is the difference between Attestation engagement and Direct reporting engagement in auditing?

Before we discuss the difference between attestation engagement and direct reporting engagement, lets understand what is assurance engagement at first place. Assurance engagement is simply an engagement conducted by a practitioner at the end of which he...

What is tolerable misstatement and tolerable rate of deviation and the difference betweem them?

Auditor most of the time, due to number of factors, is unable to apply audit procedures on each and every piece of information available to him. Therefore, he applies different audit procedures on less...

What is Substantive audit approach / Vouching approach?

There are many different auditing methodologies or in other words auditing approaches which can be used by the auditor to conduct an audit engagement. Which audit approach is better or should be used to...

What is the difference between Material Misstatement and Material Inconsistency?

Material misstatement refers to such misstatements if present in the financial statements then the financial statements may affect the economic decisions of the users of financial statements. Material misstatements relates to the information included...

What is meant by CAATs?

CAATs short for Computer Assisted Auditing Techniques simply means that assistance of computers is taken by the auditor while carrying out audit engagement. Some students misinterpret the term as if computers will carry out...

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...

What are Subsequent Events as per Accounting and Auditing?

i-ask! | Have a question? Ask Tutor! What are subsequent events according to International Accounting Standards and International Auditing Standards? Is the meaning of subsequent events in accounting and auditing is same or different? Please...

What is the objective of an assurance engagement?

Well objective of every assurance engagement can be understood if we understand the elements of an assurance engagement. So let's first of all understand the connection between three parties and what each do. Stakeholders like...