ASSURANCE
A practitioner aims to obtain sufficient appropriate evidence in order
to express 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.
• Reasonable assurance engagement: positive expression of opinion
(e.g. statutory audit).
• Limited
assurance engagement: negative assurance (e.g. limited
review of FS).
FORENSIC
AUDIT
• Reporting in the context of financial/legal disputes, irregularities,
giving
preventive advice
• Application: Fraud, negligence, insurance claims, disputes, drug
financing
• Forensic accountant may be engaged as an expert witness in civil or
criminal
cases
•
Different approach than an audit is used. For example:
▪
No materiality threshold (maybe)
▪
Less predictable than audit
▪
Review more critically
▪
Data mining, data characteristics (e.g. date, time, amount, approval, payee)
