ACCA Advanced Audit and Assurance (AAA) Practice Exam

In which type of engagement does the practitioner evaluate subject matter that has not been measured?

1. Internal audit engagement

2. Direct engagement

3. Attestation engagement

4. Reasonable assurance engagement

The correct answer is: Attestation engagement

The correct choice, attestation engagement, involves the practitioner evaluating subject matter that has not been measured in a quantifiable manner, often pertaining to qualitative aspects. In this type of engagement, the practitioner provides an opinion or conclusion about the subject matter based on the evaluation of the underlying criteria, even when that subject matter does not lend itself to numerical measurement. This could include things like compliance with regulations or the assessment of internal controls, which often requires a judgment about the effectiveness and appropriateness of practices rather than a straightforward measurement. In contrast, internal audit engagements primarily focus on evaluating the effectiveness of internal controls and risk management processes within an organization. Although these evaluations may not always involve formal measurements, they generally have a more structured and internal focus compared to attestation engagements. Direct engagements involve the practitioner directly measuring or evaluating the subject matter. This means that the practitioner’s role is more hands-on, often conducting the assessments and arriving at conclusions without reliance on another party’s assertion. Reasonable assurance engagements typically provide a high level of assurance regarding the accuracy of the subject matter that is being measured or assessed. Although they also rely on evidence and assessments, they focus on providing assurance based on established measurement criteria rather than evaluating subject matter that is inherently unmeasured. Thus