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Standards for Assurance Engagements

This document provides guidance on assurance services that could be provided by the firm for Millan's presentation and CPA's report for prospective customers. It identifies the Philippine Framework on Assurance Engagements and two relevant standards: PSAE 3000 for assurance engagements other than audits or reviews of historical financial statements, and PSAE 3400 for the examination of prospective financial information. It also describes five key factors to consider in determining if criteria are suitable for an assurance engagement: relevance, completeness, reliability, neutrality, and understandability. The criteria should contribute to conclusions that assist decision making, include all relevant factors, allow reasonably consistent evaluation, be free from bias, and be clear and not subject to

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Samuel Ferolino
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78 views1 page

Standards for Assurance Engagements

This document provides guidance on assurance services that could be provided by the firm for Millan's presentation and CPA's report for prospective customers. It identifies the Philippine Framework on Assurance Engagements and two relevant standards: PSAE 3000 for assurance engagements other than audits or reviews of historical financial statements, and PSAE 3400 for the examination of prospective financial information. It also describes five key factors to consider in determining if criteria are suitable for an assurance engagement: relevance, completeness, reliability, neutrality, and understandability. The criteria should contribute to conclusions that assist decision making, include all relevant factors, allow reasonably consistent evaluation, be free from bias, and be clear and not subject to

Uploaded by

Samuel Ferolino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Samuel Demosthenes E.

Ferolino III
BSA 3

Audit

a.) If Millan wants to provide the presentation and CPA's report for general use by prospective
customers, identify any available standards that provide guidance for such a service and the type
or types of services that your firm could provide.

Philippine Framework on Assurance Engagements


PSAE 3000 (Rev.) – Assurance Engagements Other Than Audits or Reviews of Historical
Financial Statements
PSAE 3400 – The Examination of Prospective Financial Information (previously PSA 810)

b.) Describe the factors that you should consider in determining whether the criteria are suitable.

Suitable criteria exhibit the following characteristics:

(a) Relevance: relevant criteria contribute to conclusions that assist decision making by the
intended users.
(b) Completeness: criteria are sufficiently complete when relevant factors that
could affect the conclusions in the context of the engagement circumstances
are not omitted. Complete criteria include, where relevant, benchmarks for
presentation and disclosure.
(c) Reliability: reliable criteria allow reasonably consistent evaluation or
measurement of the subject matter including, where relevant, presentation
and disclosure, when used in similar circumstances by similarly qualified
practitioners.
(d) Neutrality: neutral criteria contribute to conclusions that are free from bias.
(e) Understandability: understandable criteria contribute to conclusions that are
clear, comprehensive, and not subject to significantly different
interpretations. The evaluation or measurement of a subject matter on the
basis of the practitioner’s own expectations, judgments and individual
experience would not constitute suitable criteria.

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