what is a limited assurance ?

Expert Solution

Limited assurance engagement means an assurance engagement where the assurance practitioner’s objective is a reduction in assurance engagement risk to a level that is acceptable in the circumstances of the assurance engagement, but where that risk is greater than for a reasonable assurance engagement, as the basis for a negative form of expression of the assurance practitioner’s conclusion. A limited assurance engagement is commonly referred to as a review.

---->> The Review Engagement or Limited Assurance is sometime call negative engagement. This type of engagement is different from a reasonable assurance engagement. Normally, this engagement, auditor perform less procedures and review to support a conclusion on the finance statements in terms of whether anything has come to the auditor attention to indicated that the finance statements are not prepared in accordance with the specific accounting standard.

Example :- LIMITED ASSURANCE will be agree up on procedures. Normally, agree up on procedures engagement is happen when client want auditor to do or examine on the certain areas of financial statements based in procedures set by them.

ekkarill92 answered 1 year ago

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