Assurance engagement is performed by the practitioners, so that it enables them to express their opinion about a certain measurement of subject for a given criteria. It raises the confidence of the users for the measurement of subject matter for the criteria, which is applicable for a given consideration. According to IAAS the meaning of assurance measurement is that engagement in which the practitioner is able to express a given conclusion which is designed so that an enhancement in the degree of confidence is achieved (Knechel, 2001, Pp 32 -56). This confidence building is related to the intended users who are other than the responsible party about the outcome of the measurement or evaluation of a subject matter.
Criteria used in Financial Reporting
The main objective of the compilation of the financial report is to present financial information which is in raw form into a financial statement. Assurance should be provided or obtained that no alteration has been made in the form of material modification. This assurance provides the satisfaction to the concerned parties that the company has done its work of financial reporting in conformity to the applicable financial reporting framework (Messier, 2003, Pp 46 - 52). After all the compilation of the financial reporting is not the assurance engagement but it is at attested engagement.
The compilation of the financial statement is different from the review of financial statement, this is because the main purpose of the compilation is not the inquiry but to sum up the raw fact. Compilation is not related to the obtaining of the entity internal control, any fraudulent activity, any inspection of the internal documents, conformation from the banks and other parties about transaction or many of the other procedures performed in an audit. On the other hand review is related ...