Differences Between Reasonable Assurance Engagements
and Limited Assurance Engagements
Type of ngagement Objective Evidence-gathering procedures Sufficient appropriate evidence is obtained as part of a systematic engagement process that includes: • Obtaining an understanding of the engagement circumstances • Assessing risks; • Responding to assessed risks; • Performing further procedures using a combination of inspection, observation,confirmation,re-calculation, re-performance, analytical procedures and inquiry. Such further procedures involve substantive procedures, including , where applicable, obtaining corroborating information, and depending on the nature of the subject matter, tests of the operating effectiveness of controls; • Evaluating the evidence obtained Sufficient appropriate evidence is obtained as part of a systematic engagement process that includes obtaining an understanding of the subject matter and other engagement circumstances, but in which procedures are deliberately limited relative to a reasonable assurance engagement The assurance report Description of the engagement circumstances, and a positive form of expression of the conclusion Reasonable A reduction in assurance assurance engagement engagement risk to an acceptably low level in the circumstances of the engagement, as the basis for a positive form of expression of the practitioner’s conclusion Limited A reduction in assurance assurance engagement engagement risk to a level that is acceptable in the circumstances of the engagement but where that risk is greater than for a reasonable assurance engagement, as the basis for a negative form of expression of the practitioner’s conclusion Description of the engagement circumstances, and a negative form of expression of the conclusion
