ASSURANCE SERVICES FRAMEWORK: latest version 2023
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Introduction
This module introduces you to the Advanced Audit and Assurance subject of the
... [Show More] CPA Program.
As you work through the study material, you will achieve a professional understanding of audit
and assurance, including the complex technical language essential for this field.
The terms ‘auditing’ and ‘assurance’ are sometimes confused. An audit is a specific type of
assurance engagement that focuses on historical financial information. That is, an audit is a
subset of assurance engagements. As shown in Table 1.1, assurance services are divided between:
• audits of historical financial information
• reviews of historical financial information
• assurance engagements other than audits and reviews of historical financial information.
Further information on the structure and hierarchy of assurance standards is provided later in
this module.
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MODULE 1
14 | ASSURANCE SERVICES FRAMEWORK
Table 1.1: Population of assurance services
Types of information Historical financial information All other information
Level of assurance
provided
Audit (reasonable) Review (limited) Reasonable or limited
Examples Audit of financial
statements
Review of financial
statements
Assurance of
prospective financial
information;
sustainability report;
greenhouse gas
report; internal control
report; or performance
information
International Standards ISAs 100–999
International Standards
on Auditing
ISREs 2000–2699
International
Standards on Review
Engagements
ISAEs 3000–3699
International Standards
on Assurance
Engagements
Source: CPA Australia 2017.
So what is an assurance engagement? The International Framework for Assurance Engagements
(para. 7) defines it as:
An engagement in which an assurance practitioner expresses a conclusion designed to enhance
the degree of confidence of the intended users other than the responsible party about the
outcome of the evaluation or measurement of a subject matter against criteria.
Auditing and assurance are governed by two separate but closely related sets of standards:
auditing standards that are concerned only with audits and reviews of historical financial
information; and assurance standards that are concerned with all other types of assurance
engagements. Both the International Standards on Auditing and International Standards
on Review Engagements continually evolve to keep pace with changes in business and
social expectations.
As you work through the study guide, you will gradually become familiar with the technical
vocabulary of auditing and assurance, where some seemingly familiar words are used in
very specific ways. This study guide aims to present the technical vocabulary of auditing and
assurance in an understandable and accessible way. While it may take you time to become
comfortable with the terminology, it is essential for clearly understanding the requirements of
the job and communicating with colleagues. For example, compare what the word ‘profit’ means
to an accounting professional and how it is used by non-accountants, who may have limited
knowledge of accruals and not fully understand profit.
To help ensure consistent understanding and usage of the terminology, each auditing standard
includes definitions of key terms. [Show Less]