Audit and Assurance Engagement: The Theoretical and Practical Aspects

Abstract

The article substantiates the need to develop audit functions related to the accomplishing of assurance engagements. The research used methods of structural and logical analysis, comparison and generalization of the requirements of the International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, as well as the current legislation. The purpose of assurance is to increase the users’ trust in the information verified by the auditor, which must be reliable and logically grounded. The auditor who performs the assurance engagement concludes that it is intended to increase the degree of trust of future users in the results of the evaluation or comparison of the subject of the engagement with the relevant criteria. The article provides outcomes of an analysis of the market of audit services in Ukraine for 2017–2019, which indicate that the audit market is functioning and is being transformed. The volume of accomplished engagements compared to 2017 has increased by almost UAH 898 million. It is substantiated that the audit firm should adhere to a number of principles that would ensure the assurance of users in the accuracy of information. These can include the following: integrity, continuity, relevance, optimality, efficiency, attracting and preserving customers, monitoring. It is proposed to develop audit in the direction of ensuring the requirements for public awareness about its activities, carrying out inspections of quality control systems, ensuring transparency of contractual relations, the results of the implementation of assurance engagements, as well as the introduction of additional requirements for them, etc.