ACCA Advanced Audit and Assurance (AAA) Practice Exam

Who are the intended users of an assurance engagement report?

1. Only company internal stakeholders

2. The broadest public audience possible

3. Individuals or organizations expected to use the report

4. The responsible party for the subject matter

The correct answer is: Individuals or organizations expected to use the report

The answer identifies the intended users of an assurance engagement report as individuals or organizations expected to use the report. This understanding is crucial because assurance engagements are designed to provide credible information to specific users who need it for decision-making processes. In this context, the users encompass not only stakeholders within a company, such as management and internal auditors, but also external parties like investors, creditors, regulators, and other relevant organizations that can leverage the assurance report to assess aspects such as the organization’s financial health, compliance with regulations, or operational effectiveness. The assurance engagement report aims to enhance the degree of confidence that users can place in the subject matter, which is fundamental in fostering trust and accountability. Thus, the focus is on users who require assurance that the information presented is reliable and free from material misstatement, allowing them to make informed decisions based on that information. Recognizing this intended audience helps auditors tailor their approach and the content of the report to effectively meet the needs of those users, ensuring the engagement's relevance and utility.