## Assurance Engagement
### Definition
An assurance engagement is one in which:
- A practitioner expresses a conclusion
- Designed to enhance the degree of confidence of intended users (other than the responsible party)
- About the outcome of the evaluation or measurement of a subject matter against criteria
In plain terms: the practitioner gives an opinion on specific information, so users can make confident decisions knowing the risk of that information being incorrect is reduced.
### Five Essential Elements
| # | Element | Explanation |
|---|---|---|
| 1 | Three-Party Relationship | Practitioner (broader than auditor) + Responsible Party (prepares the subject matter) + Intended Users (use the report for decisions) |
| 2 | Subject Matter | The information or data being examined — e.g., financial statements, sustainability reports, internal controls |
| 3 | Suitable Criteria | Benchmarks used to evaluate the subject matter — e.g., accounting standards, laws, regulations, GRI standards |
| 4 | SAAE | Sufficient (quantity) + Appropriate (quality) Audit Evidence |
| 5 | Written Report | The formal conclusion must be communicated in a written report |
### Practitioner vs Auditor
- Auditor: works specifically on historical financial information
- Practitioner: broader term — can provide assurance on non-financial, non-historical, or forward-looking information