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3 Cards in this Set
- Front
- Back
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Explain the levels and benefits of assurance |
Reasonable = high level of assurance gives positive opinion of f/s
Limited = moderate level of assurance provides negative opinion of a review of financial information
Benefits: - Increases credibility of info - Reduces risk of management bias, fraud or error - Highlights deficiencies in info - Provides assurance to banks for funding, Investors for investing and other stakeholders/shareholders |
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When is a statutory audit required? |
- 50+ or more employees - Turnover above £10.2mil - Gross assets above £5.1mil - Insurance or Banking industry 🏦 - 10%+ Shareholder requests it |
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What are the differences between audit and other assurance engagements? |
Statutory audit: - Provides reasonable assurance and expresses opinion on f/s. - Report to shareholders - Companies act 2006 determines work conducted Other assurance engagements: - Provides limited assurance - Reporting a conclusion on work performed - Report to management - Less work than audit |
