Assurance is another word for "comfort". This chapter aims to help you understand more about what assurance is, why we need it, and the different levels of assurance that can be given.
The external audit is an example of an assurance engagement because, by providing an opinion on the financial statements, the external audit is providing assurance to the entity's shareholders as to whether or not the financial statements are 'reliable'. Other key assurance services in the syllabus include review engagements and internal audit assignments.
We will also see that there are essentially two levels of assurance: reasonable assurance and limited assurance.
Chapter summary
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