In an assurance engagement, which three parties are involved?
Answer and explanation
Correct answer: A. The practitioner, responsible party and intended users
- Step 1: An assurance engagement is a three-party relationship.
- Step 2: The practitioner gives a conclusion on information prepared by the responsible party, for the benefit of intended users.
Answer
The practitioner, responsible party and intended users.
Why not the others: A regulator and an internal auditor are not the defined parties to every assurance engagement. Shareholders and banks may be users but the responsible party and practitioner must both be present, and the bank is not a defined party. The supplier is not a party to the engagement.
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