Page 207 - AAA Integrated Workbook STUDENT S18-J19
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Audit-related services
Levels of assurance
2.1 Reasonable assurance
The objective of a reasonable assurance engagement is to obtain sufficient
appropriate evidence to conclude that the subject matter conforms in all material
respects with identified suitable criteria.
The accountant expresses their conclusion in a positive form, giving an opinion on
whether the subject matter is free from material misstatement, e.g. statutory audit.
2.2 Limited assurance
The objective of a limited assurance engagement is to obtain sufficient appropriate
evidence to be satisfied that the subject matter appears plausible in the
circumstances.
The accountant expresses their conclusion in a negative form, stating that their
procedures have not identified any material misstatement of the subject matter, e.g. a
review engagement.
The procedures for a limited assurance engagement are therefore less
comprehensive than for a reasonable assurance engagement.
2.3 No assurance (agreed upon procedures)
The objective of an agreed upon procedures engagement is to perform the
procedures requested by the client and report the findings on a factual basis.
The client forms their own conclusion based on the results of the work.
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