Audit and audit-related services

In this lesson

1. 0:00 Audit related and assurance services overview
2. 1:01 Audit versus limited assurance engagements
3. 2:27 Review engagements and limited assurance
4. 3:22 Agreed upon procedures explained
5. 4:44 Five elements of assurance engagements
6. 6:56 Process and terms of engagement
7. 7:40 Types of assurance engagements
8. 9:03 Levels of assurance: reasonable to limited
9. 10:54 No assurance and agreed upon procedures

About this lesson

This is essential for Advanced Audit and Assurance, as exam questions frequently test your ability to identify the right engagement type and express conclusions correctly based on the assurance level provided. The lesson covers the five core elements present in every assurance engagement: the three-party relationship (practitioner, intended user, and responsible party), the subject matter being reviewed, the criteria used to assess it, the evidence collected, and the report issued. You'll see how these elements apply across different engagement types, from statutory audits providing reasonable assurance to agreed-upon procedures engagements where you report factual findings and let the user draw their own conclusions. You'll also learn the practical differences between engagement types. An audit of historical financial statements gives positive assurance—you state an opinion that the statements are true and fair. A review engagement provides limited assurance with a negative expression—you report that nothing has come to your attention to suggest the statements are incorrect. An agreed-upon procedures engagement provides no assurance at all; instead, you simply report what you found and let the client decide what it means. Understanding when and how to use each engagement type, and the language required for each assurance level, is critical for passing your exams and advising clients correctly.

Duration: 11m