Auditing Profession Act, 2005 (Act No. 26 of 2005)Board NoticesIndependent Regulatory Board for AuditorsNew Rules Regarding Improper Conduct and Code of Professional Conduct for Registered AuditorsCode of Professional Conduct for Registered AuditorsPart B : Registered Auditors in Public PracticeSection 291 : Independence - Other Assurance EngagementsAssurance Engagements |
| 291.12 | As further explained in the Assurance Framework, in an assurance engagement the registered auditor expresses a conclusion designed to enhance the degree of confidence of the intended users (other than the responsible party) about the outcome of the evaluation or measurement of a subject matter against criteria. |
| 291.13 | The outcome of the evaluation or measurement of a subject matter is the information that results from applying the criteria to the subject matter. The term “subject matter information” is used to mean the outcome of the evaluation or measurement of a subject matter. For example, the Framework states that an assertion about the effectiveness of internal control (subject matter information) results from applying a framework for evaluating the effectiveness of internal control, such as COSO12 or CoCo13 (criteria), to internal control, a process (subject matter). |
| 291.14 | Assurance engagements may be assertion-based or direct reporting. In either case, they involve three separate parties: a registered auditor, a responsible party and intended users. |
| 291.15 | In an assertion-based assurance engagement, the evaluation or measurement of the subject matter is performed by the responsible party, and the subject matter information is in the form of an assertion by the responsible party that is made available to the intended users. |
| 291.16 | In a direct reporting assurance engagement, the registered auditor either directly performs the evaluation or measurement of the subject matter, or obtains a representation from the responsible party that has performed the evaluation or measurement that is not available to the intended users. The subject matter information is provided to the intended users in the assurance report. |
_______________________________________
| 12 | “Internal Control - Integrated Framework” The Committee of Sponsoring Organizations of the Treadway Commission |
| 13 | “Guidance on Assessing Control The CoCo Principles” Criteria of Control Board. The Canadian Institute of Chartered Accountants. |