An assurance engagement performed by a practitioner will consist of the following five elements:
1. A three party relationship:
• Practitioner – the individual providing professional services that will review the subject matter and provide the assurance. E.g. the audit firm in a statutory audit
• Responsible party – the person(s) responsible for the subject matter.
E.g. the procurement officers are responsible for preparing the procurement records to be audited
• Intended users – the person(s) or class of persons for whom the practitioner prepares the assurance report. E.g. the shareholders in a statutory audit
2. Subject matter: This is the data in the procurement records that have been prepared by the responsible party for the procurement auditor to evaluate.
3. Suitable criteria: This can be thought of as ‘the rules’ against which the subject matter is evaluated in order to reach an opinion. In a statutory audit this would be the applicable reporting framework (e.g. IFRS. Procurement law and Company law).
4. Evidence: Information used by the practitioner in arriving at the conclusion on which their opinion is based. This must be sufficient (enough) and appropriate (relevant).
5. Assurance Report: The report (normally written) containing the practitioner’s opinion. This is issued to the intended user following the collection of evidence.
