Question 1

In the Context of an Assurance engagement process, external auditors provide assurance within the concept of agency. Assurance is a professional service with an aim of improving the quality and transparency of information, to reduce the chance of problems occurring from incorrect information. An external audit is a type of assurance service.

Required:

(a) Discuss the concept of agency and explain how the auditor provides assurance with suitable Practical Examples.

In your answer, you need to include the discussion of agency relationship, along with its connection between shareholders, Board of Directors and external auditors in a listed company using some practical examples.

Question 2

“Assurance engagement” means an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users”

Required:

a) Discuss any four elements of an assurance engagement with suitable example.

b) Discuss the principal activities of auditors during the audit process in order that the auditor may give an opinion on financial statements with suitable practical examples.

Answer rating: 100% (QA)

An assurance engagement is a type of assignment performed by a practitioner in order to express an opinion about a subject matter against criteria Usually this engagement allows the users to base thei... View the full answer