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Determinants of the Maximum Level of Assurance for Various Assurance Services
Author(s) -
Ruhnke Klaus,
Lubitzsch Kay
Publication year - 2010
Publication title -
international journal of auditing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.583
H-Index - 21
eISSN - 1099-1123
pISSN - 1090-6738
DOI - 10.1111/j.1099-1123.2009.00414.x
Subject(s) - audit , quality assurance , accounting , program assurance , process management , computer science , business , service (business) , marketing
Although the International Framework for assurance engagements established by the IFAC (IFAC Framework) has reached overall acceptance, controversy still exists as to how to determine and effectively communicate the potentially different levels of assurance for various types of engagements. This paper concentrates on the determinants of the maximum level of assurance for different assurance services. Using theoretical considerations and empirical evidence the primary conclusion is that there is a restriction in the maximum level of assurance that can be explained by using the attributes of the audited subject matter. In general, this evidence supports the interaction of variables model embedded in the IFAC Framework. Based upon these findings, the paper discusses some changes in the IFAC Framework, a possible alternative to the concept of reasonable assurance, and research perspectives.