Complying with Standards that are Relevant to the Engagement

The assurance practitioner shall comply with this ASAE and any subject matter‑specific ASAEs relevant to the engagement.

The assurance practitioner shall not represent compliance with this or any other ASAE unless the assurance practitioner has complied with the requirements of this ASAE and any other ASAE relevant to the engagement.  (Ref: Para. A21–A22, A171)

Text of an ASAE

The assurance practitioner shall have an understanding of the entire text of an ASAE, including its application and other explanatory material, to understand its objectives and to apply its requirements properly.  (Ref: Para. A23–A28)

Complying with Relevant Requirements

Subject to the following paragraph, the assurance practitioner shall comply with each requirement of this ASAE and of any relevant subject matter‑specific ASAE unless, in the circumstances of the engagement the requirement is not relevant because it is conditional and the condition does not exist.  Requirements that apply to only limited assurance or reasonable assurance engagements have been presented in a columnar format with the letter “L” (limited assurance) or “R” (reasonable assurance) after the paragraph number.  (Ref: Para. A29)

In exceptional circumstances, the assurance practitioner may judge it necessary to depart from a relevant requirement in an ASAE.  In such circumstances, the assurance practitioner shall perform alternative procedures to achieve the aim of that requirement.  The need for the assurance practitioner to depart from a relevant requirement is expected to arise only where the requirement is for a specific procedure to be performed and, in the specific circumstances of the engagement, that procedure would be ineffective in achieving the aim of the requirement.

Failure to Achieve an Objective

If an objective in this ASAE or a relevant subject matter‑specific ASAE cannot be achieved, the assurance practitioner shall evaluate whether this requires the assurance practitioner to modify the assurance practitioner’s conclusion or withdraw from the engagement (where withdrawal is possible under applicable law or regulation).  Failure to achieve an objective in a relevant ASAE represents a significant matter requiring documentation in accordance with paragraph 79 of this ASAE.

[Deleted by the AUASB.  Refer Aus 20.1.]

The assurance practitioner shall comply with the relevant ethical requirements^[*] related to assurance engagements, or other professional requirements, or requirements imposed by law or regulation, that are at least as demanding.  (Ref. Para.A30‑A34, A60).

The lead assurance practitioner shall be satisfied that the firm's policies or procedures for the acceptance and continuance of client relationships and assurance engagements have been followed by the firm, and shall determine that conclusions reached in this regard are appropriate.

The assurance practitioner shall accept or continue an assurance engagement only when: (Ref: Para. A30–A34)

1. The assurance practitioner has no reason to believe that relevant ethical requirements, including independence, will not be satisfied;
2. The assurance practitioner is satisfied that those persons who are to perform the engagement collectively have the appropriate competence and capabilities, including having sufficient time to perform the engagement (see also paragraph 32 of this ASAE); and
3. The basis upon which the engagement is to be performed has been agreed, through:
   1. Establishing that the preconditions for an assurance engagement are present (see also paragraphs 24–25 of this ASAE); and
   2. Confirming that there is a common understanding between the assurance practitioner and the engaging party of the terms of the engagement, including the assurance practitioner’s reporting responsibilities.

If the lead assurance practitioner obtains information that may have caused the firm to decline the engagement had that information been known by the firm prior to accepting or continuing the client relationship or specific engagement, the lead assurance practitioner shall communicate that information promptly to the firm, so that the firm and the lead assurance practitioner can take the necessary action.

Preconditions for the Assurance Engagement

In order to establish whether the preconditions for an assurance engagement are present, the assurance practitioner shall, on the basis of a preliminary knowledge of the engagement circumstances and discussion with the appropriate party(ies), determine whether: (Ref: Para. A35–A36)

1. The roles and responsibilities of the appropriate parties are suitable in the circumstances; and (Ref: Para. A37–A39)
2. The engagement exhibits all of the following characteristics:
   1. The underlying subject matter is appropriate; (Ref: Para. A40–A44)
   2. The criteria that the assurance practitioner expects to be applied in the preparation of the subject matter information are suitable for the engagement circumstances, including that they exhibit the following characteristics: (Ref: Para. A45–A50)
      1. Relevance.
      2. Completeness.
      3. Reliability.
      4. Neutrality.
      5. Understandability.
   3. The criteria that the assurance practitioner expects to be applied in the preparation of the subject matter information will be available to the intended users.  (Ref: Para. A51–A52)
   4. The assurance practitioner expects to be able to obtain the evidence needed to support the assurance practitioner’s conclusion; (Ref: Para. A53–A55)
   5. The assurance practitioner’s conclusion, in the form appropriate to either a reasonable assurance engagement or a limited assurance engagement, is to be contained in a written report; and
   6. A rational purpose including, in the case of a limited assurance engagement, that the assurance practitioner expects to be able to obtain a meaningful level of assurance.  (Ref: Para. A56)

If the preconditions for an assurance engagement are not present, the assurance practitioner shall discuss the matter with the engaging party.  If changes cannot be made to meet the preconditions, the assurance practitioner shall not accept the engagement as an assurance engagement unless required by law or regulation to do so.  However, an engagement conducted under such circumstances does not comply with ASAEs.  Accordingly, the assurance practitioner shall not include any reference within the assurance report to the engagement having been conducted in accordance with this ASAE or any other ASAE(s).

Limitation on Scope Prior to Acceptance of the Engagement

If the engaging party imposes a limitation on the scope of the assurance practitioner’s work in the terms of a proposed assurance engagement such that the assurance practitioner believes the limitation will result in the assurance practitioner disclaiming a conclusion on the subject matter information, the assurance practitioner shall not accept such an engagement as an assurance engagement, unless required by law or regulation to do so.  (Ref: Para. A156(c))

Agreeing on the Terms of the Engagement

The assurance practitioner shall agree the terms of the engagement with the engaging party.  The agreed terms of the engagement shall be specified in sufficient detail in an engagement letter or other suitable form of written agreement, written confirmation, or in law or regulation.  (Ref: Para. A57–A58)

On recurring engagements, the assurance practitioner shall assess whether circumstances require the terms of the engagement to be revised and whether there is a need to remind the engaging party of the existing terms of the engagement.

Acceptance of a Change in the Terms of the Engagement

The assurance practitioner shall not agree to a change in the terms of the engagement where there is no reasonable justification for doing so.  If such a change is made, the assurance practitioner shall not disregard evidence that was obtained prior to the change.  (Ref: Para. A59)

Assurance Report Prescribed by Law or Regulation

Where, in some cases, law or regulation prescribe the layout or wording of the assurance report, the assurance practitioner shall evaluate:

1. Whether intended users might misunderstand the assurance conclusion; and
2. If so, whether additional explanation in the assurance report can mitigate possible misunderstanding.

If the assurance practitioner concludes that additional explanation in the assurance report cannot mitigate possible misunderstanding, the assurance practitioner shall not accept the engagement, unless required by law or regulation to do so.  An engagement conducted in accordance with such law or regulation does not comply with ASAEs.  Accordingly, the assurance practitioner shall not include any reference within the assurance report to the engagement having been conducted in accordance with this ASAE or any other ASAE(s) (see also paragraph 71 of this ASAE).

Characteristics of the Lead Assurance Practitioner

The lead assurance practitioner shall:

1. Be a member of a firm that applies ASQM 1,^[*] or other professional requirements, or requirements in law or regulation, that are at least as demanding as ASQM 1; (Ref: Para. A60–A66)

Engagement Resources

2. Determine that sufficient and appropriate resources to perform the engagement are assigned or made available to the engagement team in a timely manner, taking into account the nature and circumstances of the engagement, the firm’s policies or procedures, and any changes that may arise during the engagement.
3. Have competence in assurance skills and techniques developed through extensive training and practical application; and (Ref: Para. A60)
4. Have sufficient competence in the underlying subject matter and its measurement or evaluation to accept responsibility for the assurance conclusion.  (Ref: Para. A67–A68)

The lead assurance practitioner shall: (Ref: Para. A69)

1. Be satisfied that those persons who are to perform the engagement collectively have the appropriate competence and capabilities, including having sufficient time to: (Ref: Para. A70–A71)
   1. Perform the engagement in accordance with relevant standards and applicable legal and regulatory requirements; and
   2. Enable an assurance report that is appropriate in the circumstances to be issued.
2. Be satisfied that the assurance practitioner will be able to be involved in the work of:
   1. An assurance practitioner’s expert where the work of that expert is to be used; and (Ref: Para. A70–A71)
   2. Another assurance practitioner, not part of the engagement team, where the assurance work of that assurance practitioner is to be used, (Ref: Para. A72–A73)
3. to an extent that is sufficient to accept responsibility for the assurance conclusion on the subject matter information.

Responsibilities of the Lead Assurance Practitioner

The lead assurance practitioner shall take overall responsibility for managing and achieving quality on the engagement and be sufficiently and appropriately involved throughout the engagement.  This includes responsibility for:

1. Being satisfied that the firm's policies or procedures for the acceptance and continuance of client relationships and assurance engagements have been followed;
2. The engagement being planned and performed (including appropriate direction and supervision of engagement team members) in accordance with professional standards and applicable legal and regulatory requirements;
3. Reviews being performed in accordance with the firm’s policies or procedures and reviewing the engagement documentation on or before the date of the assurance report; (Ref: Para. A74)
4. Appropriate engagement documentation being maintained to provide evidence of achievement of the assurance practitioner’s objectives, and that the engagement was performed in accordance with relevant ASAEs and relevant legal and regulatory requirements; and
5. Appropriate consultation being undertaken by the engagement team on difficult or contentious matters.

Throughout the engagement, the lead assurance practitioner shall remain alert, through observation and making enquiries as necessary, for evidence of breaches of relevant ethical requirements by members of the engagement team.  If matters come to the lead assurance practitioner’s attention through the firm’s system of quality management or otherwise that indicate that members of the engagement team have breached relevant ethical requirements, the lead assurance practitioner, in consultation with others in the firm, shall determine the appropriate action.

The lead assurance practitioner shall consider the information from the firm’s monitoring and remediation process, as communicated by the firm and, if applicable, other network firms and whether the information may affect the assurance engagement.

Engagement Quality Review

For those engagements for which an engagement quality review is required in accordance with ASQM 1 or the firm’s policies or procedures the lead assurance practitioner shall discuss significant matters and significant judgments arising during the engagement with the engagement quality reviewer, and not date the assurance report until completion of that review.^[3]

The assurance practitioner shall plan and perform an engagement with professional scepticism, recognising that circumstances may exist that cause the subject matter information to be materially misstated. (Ref: Para. A76–A80)

The assurance practitioner shall exercise professional judgement in planning and performing an assurance engagement, including determining the nature, timing and extent of procedures.  (Ref: Para. A81–A85)

The assurance practitioner shall apply assurance skills and techniques as part of an iterative, systematic engagement process.

Planning

The assurance practitioner shall plan the engagement so that it will be performed in an effective manner, including setting the scope, timing and direction of the engagement, and determining the nature, timing and extent of planned procedures that are required to be carried out in order to achieve the objective of the assurance practitioner. (Ref: Para. A86–A89)

The assurance practitioner shall determine whether the criteria are suitable for the engagement circumstances, including that they exhibit the characteristics identified in paragraph 24(b)(ii) of this ASAE.

If it is discovered after the engagement has been accepted that one or more preconditions for an assurance engagement is not present, the assurance practitioner shall discuss the matter with the appropriate party(ies), and shall determine:

1. Whether the matter can be resolved to the assurance practitioner’s satisfaction;
2. Whether it is appropriate to continue with the engagement; and
3. Whether and, if so, how to communicate the matter in the assurance report. 

If it is discovered after the engagement has been accepted that some or all of the applicable criteria are unsuitable or some or all of the underlying subject matter is not appropriate for an assurance engagement, the assurance practitioner shall consider withdrawing from the engagement, if withdrawal is possible under applicable law or regulation.  If the assurance practitioner continues with the engagement, the assurance practitioner shall express a qualified or adverse conclusion, or disclaimer of conclusion, as appropriate in the circumstances.  (Ref: Para. A90–A91)

Materiality

The assurance practitioner shall consider materiality when: (Ref: Para. A92–A100)  

1. Planning and performing the assurance engagement, including when determining the nature, timing and extent of procedures; and
2. Evaluating whether the subject matter information is free from material misstatement.

Understanding the Underlying Subject Matter and Other Engagement Circumstances

The assurance practitioner shall make enquiries of the appropriate party(ies) regarding:

1. Whether they have knowledge of any actual, suspected or alleged intentional misstatement or non‑compliance with laws and regulations affecting the subject matter information; (Ref: Para. A101‑A102)
2. Whether the responsible party has an internal audit function and, if so, make further enquiries to obtain an understanding of the activities and main findings of the internal audit function with respect to the subject matter information; and
3. Whether the responsible party has used any experts in the preparation of the subject matter information.

Risk Consideration and Responses to Risks

When designing and performing procedures, the assurance practitioner shall consider the relevance and reliability of the information to be used as evidence.  If:

1. Evidence obtained from one source is inconsistent with that obtained from another; or
2. The assurance practitioner has doubts about the reliability of information to be used as evidence,

the assurance practitioner shall determine what changes or additions to procedures are necessary to resolve the matter, and shall consider the effect of the matter, if any, on other aspects of the engagement.

The assurance practitioner shall accumulate uncorrected misstatements identified during the engagement other than those that are clearly trivial.  (Ref: Para. A119–A120)

Work Performed by an Assurance Practitioner’s Expert

When the work of an assurance practitioner’s expert is to be used, the assurance practitioner shall also: (Ref: Para. A121–A125)

1. Evaluate whether the assurance practitioner’s expert has the necessary competence, capabilities and objectivity for the assurance practitioner’s purposes.  In the case of an assurance practitioner’s external expert, the evaluation of objectivity shall include enquiry regarding interests and relationships that may create a threat to that expert’s objectivity; (Ref: Para. A126–A129)
2. Obtain a sufficient understanding of the field of expertise of the assurance practitioner’s expert; (Ref: Para. A130–A131)
3. Agree with the assurance practitioner’s expert on the nature, scope and objectives of that expert’s work; and (Ref: Para. A132–A133)
4. Evaluate the adequacy of the assurance practitioner’s expert’s work for the assurance practitioner’s purposes.  (Ref: Para. A134–A135)

Work Performed by Another Assurance Practitioner, a Responsible Party’s or Measurer’s or Evaluator’s Expert, or an Internal Auditor (Ref: Para. A136)

When the work of another assurance practitioner is to be used, the assurance practitioner shall evaluate whether that work is adequate for the assurance practitioner’s purposes. 

If information to be used as evidence has been prepared using the work of a responsible party’s or a measurer’s or evaluator’s expert, the assurance practitioner shall, to the extent necessary having regard to the significance of that expert’s work for the assurance practitioner’s purposes:

1. Evaluate the competence, capabilities and objectivity of that expert;
2. Obtain an understanding of the work of that expert; and
3. Evaluate the appropriateness of that expert’s work as evidence.

If the assurance practitioner plans to use the work of the internal audit function, the assurance practitioner shall evaluate the following:

1. The extent to which the internal audit function’s organisational status and relevant policies and procedures support the objectivity of the internal auditors;
2. The level of competence of the internal audit function;
3. Whether the internal audit function applies a systematic and disciplined approach, including quality control; and
4. Whether the work of the internal audit function is adequate for the purposes of the engagement.

Written Representations

The assurance practitioner shall request from the appropriate party(ies) a written representation:

1. That it has provided the assurance practitioner with all information of which the appropriate party(ies) is aware that is relevant to the engagement.  (Ref: Para. A54–A55 and A137–A139)
2. Confirming the measurement or evaluation of the underlying subject matter against the applicable criteria, including that all relevant matters are reflected in the subject matter information.

If, in addition to required representations, the assurance practitioner determines that it is necessary to obtain one or more written representations to support other evidence relevant to the subject matter information, the assurance practitioner shall request such other written representations.

When written representations relate to matters that are material to the subject matter information, the assurance practitioner shall:

1. Evaluate their reasonableness and consistency with other evidence obtained, including other representations (oral or written); and
2. Consider whether those making the representations can be expected to be well‑informed on the particular matters.

The date of the written representations shall be as near as practicable to, but not after, the date of the assurance report.

Requested Written Representations Not Provided or Not Reliable

If one or more of the requested written representations are not provided or the assurance practitioner concludes that there is sufficient doubt about the competence, integrity, ethical values, or diligence of those providing the written representations, or that the written representations are otherwise not reliable, the assurance practitioner shall: (Ref: Para. A140)

1. Discuss the matter with the appropriate party(ies);
2. Re‑evaluate the integrity of those from whom the representations were requested or received and evaluate the effect that this may have on the reliability of representations (oral or written) and evidence in general; and
3. Take appropriate actions, including determining the possible effect on the conclusion in the assurance report.

When relevant to the engagement, the assurance practitioner shall consider the effect on the subject matter information and on the assurance report of events up to the date of the assurance report, and shall respond appropriately to facts that become known to the assurance practitioner after the date of the assurance report, that, had they been known to the assurance practitioner at that date, may have caused the assurance practitioner to amend the assurance report.  The extent of consideration of subsequent events depends on the potential for such events to affect the subject matter information and to affect the appropriateness of the assurance practitioner’s conclusion.  However, the assurance practitioner has no responsibility to perform any procedures regarding the subject matter information after the date of the assurance report.  (Ref: Para. A141–A142)

When documents containing the subject matter information and the assurance report thereon include other information, the assurance practitioner shall read that other information to identify material inconsistencies, if any, with the subject matter information or the assurance report and, if on reading that other information, the assurance practitioner: (Ref: Para. A143)

1. Identifies a material inconsistency between that other information and the subject matter information or the assurance report; or
2. Becomes aware of a material misstatement of fact in that other information that is unrelated to matters appearing in the subject matter information or the assurance report,

the assurance practitioner shall discuss the matter with the appropriate party(ies) and take further action as appropriate.

The assurance practitioner shall evaluate whether the subject matter information adequately refers to or describes the applicable criteria.  (Ref: Para. A144–A146)

The assurance practitioner shall evaluate the sufficiency and appropriateness of the evidence obtained in the context of the engagement and, if necessary in the circumstances, attempt to obtain further evidence.  The assurance practitioner shall consider all relevant evidence, regardless of whether it appears to corroborate or to contradict the measurement or evaluation of the underlying subject matter against the applicable criteria.  If the assurance practitioner is unable to obtain necessary further evidence, the assurance practitioner shall consider the implications for the assurance practitioner’s conclusion in paragraph 65 of this ASAE.  (Ref: Para. A147–A153)

The assurance practitioner shall form a conclusion about whether the subject matter information is free of material misstatement.  In forming that conclusion, the assurance practitioner shall consider the assurance practitioner’s conclusion in paragraph 64 of this ASAE regarding the sufficiency and appropriateness of evidence obtained and an evaluation of whether uncorrected misstatements are material, individually or in the aggregate.  (Ref: Para. A2 and A154–A155)

If the assurance practitioner is unable to obtain sufficient appropriate evidence, a scope limitation exists and the assurance practitioner shall express a qualified conclusion, disclaim a conclusion, or withdraw from the engagement, where withdrawal is possible under applicable law or regulation, as appropriate.  (Ref: Para. A156–A158)

The assurance report shall be in writing and shall contain a clear expression of the assurance practitioner’s conclusion about the subject matter information. (Ref: Para. A2, A159–A161)

The assurance practitioner’s conclusion shall be clearly separated from information or explanations that are not intended to affect the assurance practitioner’s conclusion, including any Emphasis of Matter, Other Matter, findings related to particular aspects of the engagements, recommendations or additional information included in the assurance report.  The wording used shall make it clear that an Emphasis of Matter, Other Matter, findings, recommendations or additional information is not intended to detract from the assurance practitioner’s conclusion. (Ref: Para. A159–A161)

Assurance Report Content

The assurance report shall include at a minimum the following basic elements:

1. A title that clearly indicates the report is an independent assurance report.  (Ref: Para. A162)
2. An addressee.  (Ref: Para. A163)
3. An identification or description of the level of assurance obtained by the assurance practitioner, the subject matter information and, when appropriate, the underlying subject matter.  When the assurance practitioner’s conclusion is phrased in terms of a statement made by the appropriate party, that statement shall accompany the assurance report, be reproduced in the assurance report or be referenced therein to a source that is available to the intended users.  (Ref: Para A164)
4. Identification of the applicable criteria.  (Ref: Para. A165)
5. Where appropriate, a description of any significant inherent limitations associated with the measurement or evaluation of the underlying subject matter against the applicable criteria.  (Ref: Para. A166)
6. When the applicable criteria are designed for a specific purpose, a statement alerting readers to this fact and that, as a result, the subject matter information may not be suitable for another purpose.  (Ref: Para. A167–A168)
7. A statement to identify the responsible party and the measurer or evaluator if different, and to describe their responsibilities and the assurance practitioner’s responsibilities.  (Ref: Para. A169)
8. A statement that the engagement was performed in accordance with this ASAE or, where there is a subject‑matter specific ASAE, that ASAE.  (Ref: Para. A170–A171)
9. A statement that the firm of which the assurance practitioner is a member applies ASQM 1, or other professional requirements, or requirements in law or regulation, that are at least as demanding as ASQM 1. If the assurance practitioner is not a professional accountant, the statement shall identify the professional requirements, or requirements in law or regulation, applied that are at least as demanding as ASQM 1.  (Ref: Para. A172)
10. A statement that the assurance practitioner complies with the independence and other relevant ethical requirements related to assurance engagements, or other professional requirements, or requirements imposed by law or regulation, that are at least as demanding. If the assurance practitioner is not a professional accountant, the statement shall identify the professional requirements, or requirements imposed by law or regulation, applied that are at least as demanding as ASA 102.  (Ref: Para. A173)
11. An informative summary of the work performed as the basis for the assurance practitioner’s conclusion.  In the case of a limited assurance engagement, an appreciation of the nature, timing, and extent of procedures performed is essential to understanding the assurance practitioner’s conclusion.  In a limited assurance engagement, the summary of the work performed shall state that:
    1. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement; and
    2. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.  (Ref: Para. A6, A174–A178)
12. The assurance practitioner’s conclusion: (Ref: Para. A2, A179–A181)
    1. When appropriate, the conclusion shall inform the intended users of the context in which the assurance practitioner’s conclusion is to be read.  (Ref: Para. A180)
    2. In a reasonable assurance engagement, the conclusion shall be expressed in a positive form.  (Ref: Para. A179)
    3. In a limited assurance engagement, the conclusion shall be expressed in a form that conveys whether, based on the procedures performed and evidence obtained, a matter(s) has come to the assurance practitioner’s attention to cause the assurance practitioner to believe that the subject matter information is materially misstated.  (Ref: Para. A181)
    4. The conclusion in (ii) or (iii) shall be phrased using appropriate words for the underlying subject matter and applicable criteria given the engagement circumstances and shall be phrased in terms of: (Ref: Para. A182)
       1. The underlying subject matter and the applicable criteria;
       2. The subject matter information and the applicable criteria; or
       3. A statement made by the appropriate party.
    5. When the assurance practitioner expresses a modified conclusion, the assurance report shall contain:
       1. A section that provides a description of the matter(s) giving rise to the modification; and
       2. A section that contains the assurance practitioner’s modified conclusion.  (Ref: Para. A183)
13. The assurance practitioner’s signature.  (Ref: Para. A184)
14. The date of the assurance report.  The assurance report shall be dated no earlier than the date on which:
    1. The assurance practitioner has obtained the evidence on which the assurance practitioner’s conclusion is based, including evidence that those with the recognised authority have asserted that they have taken responsibility for the subject matter information; and 
    2. When an engagement quality review is required in accordance with ASQM 1 or the firm’s policies or procedures, the engagement quality review is complete.  (Ref: Para. A185)
15. The location in the jurisdiction where the assurance practitioner practices.

Reference to the Assurance Practitioner’s Expert in the Assurance Report

If the assurance practitioner refers to the work of an assurance practitioner’s expert in the assurance report, the wording of that report shall not imply that the assurance practitioner’s responsibility for the conclusion expressed in that report is reduced because of the involvement of that expert. (Ref: Para. A186–A188)

Assurance Report Prescribed by Law or Regulation

If the assurance practitioner is required by law or regulation to use a specific layout or wording of the assurance report, the assurance report shall refer to this or other ASAEs only if the assurance report includes, at a minimum, each of the elements identified in paragraph 69 of this ASAE.

The assurance practitioner shall express an unmodified conclusion when the assurance practitioner concludes:

1. In the case of a reasonable assurance engagement, that the subject matter information is prepared, in all material respects, in accordance with the applicable criteria; or
2. In the case of a limited assurance engagement, that, based on the procedures performed and evidence obtained, no matter(s) has come to the attention of the assurance practitioner that causes the assurance practitioner to believe that the subject matter information is not prepared, in all material respects, in accordance with the applicable criteria.

If the assurance practitioner considers it necessary to:

1. Draw intended users’ attention to a matter presented or disclosed in the subject matter information that, in the assurance practitioner’s judgement, is of such importance that it is fundamental to intended users’ understanding of the subject matter information (an Emphasis of Matter paragraph); or
2. Communicate a matter other than those that are presented or disclosed in the subject matter information that, in the assurance practitioner’s judgement, is relevant to intended users’ understanding of the engagement, the assurance practitioner’s responsibilities or the assurance report (an Other Matter paragraph),

and this is not prohibited by law or regulation, the assurance practitioner shall do so in a paragraph in the assurance report, with an appropriate heading, that clearly indicates the assurance practitioner’s conclusion is not modified in respect of the matter. In the case of an Emphasis of Matter paragraph, such a paragraph shall refer only to information presented or disclosed in the subject matter information.

The assurance practitioner shall express a modified conclusion in the following circumstances:

1. When, in the assurance practitioner’s professional judgement, a scope limitation exists and the effect of the matter could be material (see paragraph 66). In such cases, the assurance practitioner shall express a qualified conclusion or a disclaimer of conclusion.
2. When, in the assurance practitioner’s professional judgement, the subject matter information is materially misstated. In such cases, the assurance practitioner shall express a qualified conclusion or adverse conclusion. (Ref: Para. A191)

The assurance practitioner shall express a qualified conclusion when, in the assurance practitioner’s professional judgement, the effects, or possible effects, of a matter are not so material and pervasive as to require an adverse conclusion or a disclaimer of conclusion. A qualified conclusion shall be expressed as being “except for” the effects, or possible effects, of the matter to which the qualification relates. (Ref: Para. A189–A190)

If the assurance practitioner expresses a modified conclusion because of a scope limitation but is also aware of a matter(s) that causes the subject matter information to be materially misstated, the assurance practitioner shall include in the assurance report a clear description of both the scope limitation and the matter(s) that causes that the subject matter information to be materially misstated.

When the statement made by the appropriate party has identified and properly described that the subject matter information is materially misstated, the assurance practitioner shall either:

1. Express a qualified conclusion or adverse conclusion phrased in terms of the underlying subject matter and the applicable criteria; or
2. If specifically required by the terms of the engagement to phrase the conclusion in terms of a statement made by the appropriate party, express an unqualified conclusion but include an Emphasis of Matter paragraph in the assurance report referring to the statement made by the appropriate party that identifies and properly describes that the subject matter information is materially misstated. (Ref: Para. A192)

The assurance practitioner shall consider whether, pursuant to the terms of the engagement and other engagement circumstances, any matter has come to the attention of the assurance practitioner that is to be communicated with the responsible party, the measurer or evaluator, the engaging party, those charged with governance or others. (Ref: Para. A193‑A199)

The assurance practitioner shall prepare on a timely basis engagement documentation that provides a record of the basis for the assurance report that is sufficient and appropriate to enable an experienced assurance practitioner, having no previous connection with the engagement, to understand: (Ref: Para. A200–A204)

1. The nature, timing and extent of the procedures performed to comply with relevant ASAEs and applicable legal and regulatory requirements;
2. The results of the procedures performed, and the evidence obtained; and
3. Significant matters arising during the engagement, the conclusions reached thereon, and significant professional judgements made in reaching those conclusions.

If the assurance practitioner identifies information that is inconsistent with the assurance practitioner’s final conclusion regarding a significant matter, the assurance practitioner shall document how the assurance practitioner addressed the inconsistency.

The assurance practitioner shall assemble the engagement documentation in an engagement file and complete the administrative process of assembling the final engagement file on a timely basis after the date of the assurance report. (Ref: Para. A205–A206)

After the assembly of the final engagement file has been completed, the assurance practitioner shall not delete or discard engagement documentation of any nature before the end of its retention period. (Ref: Para. A207)

If the assurance practitioner finds it necessary to amend existing engagement documentation or add new engagement documentation after the assembly of the final engagement file has been completed the assurance practitioner shall, regardless of the nature of the amendments or additions, document:

1. The specific reasons for making the amendments or additions; and
2. When, and by whom, they were made and reviewed.