Which three of the following are key elements of a general assurance engagement?
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Home Books Audiobooks Documents This challenge of assessing the trustworthiness of systems, processes and organisations, to build justified trust is not unique to AI. Assurance as a service draws originally from the accounting profession, but has since been adapted to cover many areas such as cyber security, product safety, quality and risk management. In these areas, ecosystems of assurance products and services enable people to understand whether systems are trustworthy. The requirements for a robust assurance process are most clearly laid out in the accounting profession, although we see very similar characteristics in a range of mature assurance ecosystems, from cybersecurity to product safety. In the accounting profession the 5 elements of assurance are specified as: A 3-party relationship; agreed and appropriate subject matter; suitable criteria; sufficient and appropriate evidence; conclusion/opinion. The five elements of assurance engagements provide conditions that ensure trustworthiness can be (a) adequately and consistently assessed and (b) communicated to relevant parties, to enable them to build justified trust in a defined subject matter. While we have drawn on the formal definitions developed by the accounting profession in this roadmap. Across the range of assurance ecosystems, similar roles, responsibilities and institutions for standard setting, assessment and verification provide transferable assurance infrastructures. Within these common elements, we have also seen variation in the use of different assurance models across mature ecosystems. Some rely on direct performance testing, while others rely on reviewing processes, or ensuring that accountable people have thought about the right issues at the right time. In each case, the need to assure different subject matters has led to variation in the development and use of specific assurance models, to achieve the same ends. The five elements are summarised in the following. Below each element, we summarise the key questions that need to be addressed when applying these elements in context:
Subject matter in assurance There are many different systems, processes, products, organisations and people that someone might want to build confidence/trust in and therefore will require assurance about. Someone might want to gain confidence in the trustworthiness of a product such as a medical device, a company’s IT system, a food manufacturing process, whether an organisation has trustworthy internal controls or whether a person is appropriately skilled or qualified to perform a particular task. Assurance engagements enable people to build confidence in the trustworthiness of systems, processes, products, organisations and people by evaluating and communicating reliable information about their trustworthiness. The subject matter of an assurance engagement are the specific aspects of the system, processes, product, organisation or person that the user requires information about to build justified trust. For example, when assuring an AI system, there are a number of distinct subject matters that need to be assured to build confidence and trust in the whole system. Subject matters that can be assessed to build confidence in AI systems include their accuracy, robustness, bias/fairness, societal and human rights impacts, privacy, security, management and intended use. Each of these subject matters have different characteristics and therefore require different criteria and assurance techniques - such as impact assessments, different types of audits and conformity assessments - to assess their trustworthiness.
Mature ecosystems also make use of more automated tools and services to handle certain parts of the assurance ecosystem more efficiently. For example, automated, continuous cybersecurity monitoring and the automation of transactional work in accounting. However, automation doesn't eliminate the need for expert services to address the more complex and ambiguous areas, where expert judgement is required to build justified trust. Across different mature assurance ecosystems we can see how different assurance models respond to different types of risks in different environments. We summarise findings from our comparative landscape analysis in the table below. What are the three 3 most commonly sought assurance services?3.The three commonly-sought types of assurance services are:
Audits, review and compilations.
What are the three parties involved in an assurance engagement?Assurance engagements involve three separate parties: a practitioner, a responsible party and intended users.
What are the three statements of assurance?In order of increasing level of rigor, accountants generally offer three types of assurance services: compilations, reviews and audits.
What are the types of assurance engagement?There are two main types of assurance engagements:. Reasonable assurance engagements A financial statement audit is an example of a reasonable assurance engagement. ... . Limited assurance engagements When an auditor is engaged to conduct a review, this is often a limited assurance engagement.. |