Independent financial statement audit is one of the assurance engagements wherein financial

statements of the company are scrutinized by an independent practitioner(s) to see-to-it that these
reports are free of material misstatements and thus, provide a high level of assurance to its users.
The objective of this assurance service is to boost the degree of confidence of the intended
users of the financial statements through the expression of the external auditors opinion on whether
the financial statements are fairly presented in accordance with the applicable financial reporting
framework.
Review of financial statements is another common assurance engagement wherein an
accountant gives a limited assurance that there is no need for material modification that has to be done
on the financial statements prepared and no need to modify these financial statements to conform with
the applicable financial reporting framework. This service does not require the accountant to be
knowledgeable on audit procedures, assessing fraud risk, and understanding internal controls.
Therefore, the assurance level given is lower compared to an external auditors.
Its purpose is to give a negative assurance and a moderate level of assurance that nothing has
come to the accountant that these financial statements are not free of material misstatements and are
not in compliance with the standards.
CPA Web Trust, another assurance service, provides assurance to consumers in regards to the
security of the business online. Consumers are assured that a CPA has evaluated the businesss practice
and controls and that the website meets all the criteria set by CPA WebTrust that are based from
Americal Institute of CPA standards. Its objective is to address the risks and opportunities of information
technology and provides assurance of electric commerce industry.

Examples of these assurance reports are as follows:

1. The Coca-cola Company Independent Financial Statements Audit for 2012
ELEMENTS:
A) Three Party Relationship:
PRACTITIONER: Audit Committee of
Evan G. Greenberg, Chair
Ronald W. Allen, CPA
Donald F. McHenry, CPA
Peter V. Ueberroth, CPA
RESPONSIBLE PARTY: The Coco-cola Company
INTENDED USERS: Board of Directors
B) Appropriate Subject Matter: Financial performance and condition.
C) Suitable Criteria: US GAAP
D) Sufficient Appropriate Evidence: Notes to Consolidated Financial Statements
E) Assurance Report: Independent Audit Report

2. Acme Manufacturing, Inc. and Affiliates
ELEMENTS:
A) Three Party Relationship:
PRACTITIONER: Idaho Boise
RESPONSIBLE PARTY: Acme Manufacturing, Inc. and Affiliates
INTENDED USER: Stockholders
B) Appropriate Subject Matter: Financial performance and condition
C) Suitable Criteria: U.S. Generally Accepted Accounting Principles and Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified Public Accountants.
D) Sufficient Appropriate Evidence: Operations of the business.
E) Assurance Report: Independent Review Report

3. A website and CPA WebTrust Seal
PRACTITIONER: . Virchow, Krause & Company
RESPONSIBLE PARTY: Website and business owner
INTENDED USER: Consumers
B) Appropriate Subject Matter: Security of the website in regards to accounting practices
C) Suitable Criteria: American Institute of Certified Public Accountants.
D) Sufficient Appropriate Evidence: Operations of the business.
E) Assurance Report: Independent Review Report





As defined, the objective of assurance engagement is to enhance the credibility of information
about a subject matter by evaluating whether the subject matter conforms in all material respects with
suitable criteria. This means, that these engagements leads to better decisions made by its users. Our
society depends heavily on these services in allocating its scarce resources to achieve optimum results.
Assurance service engagements, then, have huge impact to our society. They play an important role in
promoting a free-market that is important in a developed society and achieved through transparency,
accuracy and neutrality of the reports given by the practitioners. This fosters development of the
economy in the micro and the macro level and shows the significance of these services.

References:
What is a financial statement review?
http://www.accountingtools.com/questions-and-answers/what-is-a-financial-statement-review.html

CPA WebTrust Service
http://worldacademyonline.com/article/17/336/cpa_web_trust_assurance_service.html