The Authority Attaching to Philippine Standards Issued by the AASC Engagement Standards
1. Philippine Standards on Auditing (PSAs)
| * Audit of historical financial statements
| 2. Philippine Standards on Review Engagements (PSREs)
| * Review of historical financial information
| 3.Philippine Standards on Assurance Engagements (PSAEs)
| * Assurance engagements dealing with subject matters other than historical financial information
| 4. Philippine Standards on Related Services (PSRSs)
| * Compilation engagements * Engagements to apply agreed-upon procedures to information * Other related services engagements as specified by the AASC
1. PSAs, PSREs, PSAEs and PSRSs are collectively referred to as the AASC’s Engagement Standards. 2. Philippine Standards on Quality Control (PSQC) are to be applied for all services falling under the AASC’s engagement standards. 3. Philippine Standards are applicable to engagements in the Public Sector.
The Authority Attaching to Practice Statements Issued by the AASC 1. Philippine Practice Statements are issued to:
* Provide interpretive guidance and practical assistance to professional accountants in implementing Philippine Standards; and * Promote good practice.
2. Professional accountants should be aware of and consider Practice Statements applicable to the engagement.
3. A professional accountant who does not consider and apply the guidance included in a relevant Practice Statement should be prepared to explain how the basic principles and essential procedures in the AASC’s Engagement Standard(s) addressed by the Practice Statement have been complied with.
PHILIPPINE FRAMEWORK FOR ASSURANCE ENGAGEMENTS
1. The Framework does not itself establish standards or provide procedural requirements for the performance of assurance engagements.
2. In addition to the Framework and PSAs, PSREs and PSAEs, practitioners who perform assurance engagements are governed by: * The Philippine Code of Ethics of Professional Accountants; and * Philippine Standards on Quality Control (PSQCs).
1. “Assurance engagement means an engagement in which a practitioner 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.
2. “Subject matter information” refers to the outcome of the evaluation or measurement of a subject matter.
3. In some assurance engagements, 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 intended users (assertion-based engagements).
4. In other assurance engagements, the practitioner 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 (direct reporting engagements). Two Types of Assurance Engagement
1. Reasonable assurance engagement – the objective is a reduction in assurance engagement risk to an acceptably low level in the circumstances of the engagement as the basis for a positive form of expression of the practitioner’s conclusion.
2. Limited assurance engagement – the objective is a reduction in assurance engagement risk to a level that is acceptable in the circumstances of the engagement, but where the risk is greater than for a reasonable assurance engagement, as a basis for a negative form of expression of the practitioner’s conclusion.
Scope of the Framework
The following are non-assurance engagements and therefore are not covered by the Framework: 1. Engagements covered b y PSRSs such as agreed upon...
Please join StudyMode to read the full document