1. Learning Objectives LO1 Define the various financial presentations and levels of service involved in association with special reports and compliance reporting prospectuses, MD&A, and financial statements for use in other countries. LO2 Explain the various financial presentations and levels of service involved in association with future oriented financial information (FOFI), prospectuses, MD&A, and financial statements for use in other countries. LO3 Describe the umbrella standards for assurance engagements, and relate them to an acceptable reporting framework. LO4 Explain public sector auditing concepts. LO5 Explain environmental auditing issues. 1

2. Assurance Framework The Assurance Framework:  Accountability relationship: When one party is answerable to another party about a subject matter.  Assurance engagements only exist where there is an accountability relationship.  Attestation engagements: There is a written assertion by the accountable party.  Direct reporting engagements: There is no written assertion. LO3 2

3. Assurance Framework Novel aspects of assurance framework deal with criteria, significance, and engagement risk.  Suitable criteria include:  relevance, reliability, neutrality, understandability, and completeness; and  appropriate communication of extent of involvement with the information. LO3 3

4. Assurance Framework Significance can be viewed as an extension of materiality. Engagement risk implicitly includes risk of reporting significant items that are not, in fact, significant. LO3 4

5. Suitable Criteria and the Fair Presentation Framework An acceptable reporting framework or suitable criteria is one that is required by law or regulation, or meets particular objectives for the entity.  Could be special purpose or general purpose.  Can also be categorized as compliance or fair presentation frameworks. LO3 5