F8 Presentation
December 2013
Abdus Salam Jan – FCA, FPFA
Topic List
1. Introduction to assurance
2. Rules and Regulation
3. Ethics and acceptance
4. Risk
5. Planning
6. Evidence
7. Systems and controls
8. Procedures
9. Completion and review
10. Reporting
11. Corporate governance
12. Internal audit
Chapter 1
Introduction to Assurance
Chapter 1. what is assurance?
1. What is assurance?
2. Elements of an Assurance engagement
3. Assurance in the context of a company
4. The development of Assurance Engagements
5. Audit Engagements
6. Types of assurance engagements
Separation of Management from Ownership
Ownership Management
Assurance Services
by independent auditor become vital when
MANAGEMENT
of business is separated from
OWNERSHIP.
What assurance do?
Assurance enhances
the
CONFIDENCE
of users of financial
statements.
7 Users of financial statements
I INVESTORS
C CUSTOMERS
S SUPPLIERS
L LENDERS
E EMPLOYEES
P PUBLIC
G GOVT.
M MANAGEMENT
Components of Assurance Engagement
Conclusion
Practitioner Subject Matter
Intended User
Responsible Party
Evidence
Criteria
Assurance services - Overview
Types of Assurance
Reasonable
Moderate
Negative
Assurance
Positive
Assurance
There are two types of assurance engagement a practitioner is
permitted to perform:
A reasonable assurance engagement (positive but not
absolute) &
A limited assurance engagement. (moderate & negative).
Objective of External Audit
Types of Assurance Services
Limitations of an audit
Use of estimation in financial information
Evidence is persuasive not conclusive
Inherent limitations of control used as audit evidence
Representation from management as only evidence.
Can not review 100% of the transactions
I F R Ss Extras
Fair Presentation & Compliance with IFRSs Extras