The International Federation of Accountants (IFAC) has published guidelines on audit assurance engagements targeted at companies who need to comply with the requirements of the International Standard on Review Engagements (ISRE) 2400 (Revised).
Giancarlo Attolini, chair of IFAC's SMP committee, said: 'Many small and medium-sized entities (SMEs) are not required, or do not elect, to have an audit. They may, however, wish to enhance the credibility of their unaudited financial statements by having some degree of independent assurance. A review engagement, which offers limited assurance, may be the solution.'
The guide, which was developed in conjunction with CPA Canada, includes illustrative examples alongside relevant extracts from the standard. It also includes practical tips and checklists on how to implement the standard.
In addition, the International Auditing and Assurance Standards Board (IAASB) says there is a growing requirement for high quality, relevant assurance on information beyond the audit or review of financial statements and has released an updated International Standard on Assurance Engagement (ISAE).
ISAE 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information addresses a broad range of assurance engagements, ranging from assurance on statements about the effectiveness of internal control to assurance on sustainability reports and possible future engagements addressing integrated reporting. The standard covers both reasonable and limited assurance engagements, and introduces guidance designed to promote clearer understanding of these two levels of assurance.;p>
Professor Arnold Schilder, IAASB chairman, said: 'Preparers and users already look to the accountancy profession to provide assurance services on an expansive range of information, and this is anticipated to continue to grow. ISAE 3000 (Revised) provides the platform for practitioners to provide such services, and to develop new assurance services over many different subject matters, while enhancing the quality of such engagements.'
Information on ISAE 3000 is available via this link: http://www.ifac.org/publications-resources/international-standard-assura....
IFAC's guide is available HERE
