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Definitions R

Reasonable assurance to Risk of material misstatement (in the context of ASAE 3000)

Term

Definition

Reasonable assurance a high, but not absolute, level of assurance.
Reasonable assurance (in the context of an audit of a financial report)  a high, but not absolute, level of assurance.
Reasonable assurance engagement an assurance engagement in which the assurance practitioner reduces engagement risk to an acceptably low level in the circumstances of the engagement as the basis for the assurance practitioner’s conclusion. The assurance practitioner’s conclusion is expressed in a form that conveys the assurance practitioner’s opinion on the outcome of the measurement or evaluation of the underlying subject matter against criteria.
Reasonable assurance engagement (in the context of ASAE 3100)  an assurance engagement in which the assurance practitioner reduces engagement risk to an acceptably low level in the circumstances of the engagement as the basis the assurance practitioner’s conclusion. The assurance practitioner’s conclusion is expressed in a form that conveys the assurance practitioner’s opinion on the outcome of the evaluation of the compliance activities against compliance requirements.
Reasonable assurance engagement (in the context of ASAE 3450)  an assurance engagement where the assurance practitioner reduces the assurance engagement risk to an acceptably low level in the circumstances of the assurance engagement as the basis for the assurance practitioner’s conclusion.
Reasonable assurance engagement (in the context of ASAE 3500)  an assurance engagement in which the assurance practitioner reduces engagement risk to an acceptably low level in the circumstances of the engagement as the basis for the assurance practitioner’s conclusion. The assurance practitioner’s conclusion is expressed in a form that conveys the assurance practitioner’s opinion on the outcome of the evaluation of the compliance activities against compliance requirements 
Reasonable grounds  in relation to a statement made, that there must be a sufficient objective foundation for that statement.
Recalculation checking the mathematical accuracy of documents or records.
Registered company auditor  an individual who meets the requirements of section 324BE of the Act.
Related party 

a party that is either:

(i) A related party as defined in the applicable financial reporting framework; or

(ii) Where the applicable financial reporting framework establishes minimal or no related party requirements:

a. A person or other entity that has control or significant influence, directly or indirectly through one or more intermediaries, over the reporting entity;

b. Another entity over which the reporting entity has control or significant influence, directly or indirectly through one or more intermediaries; or

c. Another entity that is under common control with the reporting entity through having:

    i. Common controlling ownership;

    ii. Owners who are close family members; or

    iii Common key management.
However, entities that are under common control by a state (that is, a national, regional or local government) are not considered related unless they engage in significant transactions or share resources to a significant extent with one another
Related services  agreed upon procedures and comfort letter.
Relevant Date 

as applicable:

(i) the allotment date;

(ii) the effective date of the relevant proposed fundraising;

(iii) the implementation date of the relevant proposed merger transaction; or

(iv) in the case of a scheme of arrangement, the date of the shareholders or unit holders meeting to vote on the scheme.

Relevant ethical requirements  ethical requirements that apply to the auditor, assurance practitioner, engagement quality control reviewer and firm. In Australia, these include the applicable requirements of APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board Limited, the applicable provisions of the Corporations Act 2001 and other applicable law or regulation.
Removal  the GHGs that the entity has, during the period, removed from the atmosphere, or that would have been emitted to the atmosphere had they not been captured and channelled to a sink.
Re-performance  the assurance practitioner’s independent execution of procedures or controls that were originally performed as part of the entity’s internal control.
Report on the description and design of controls at a service organisation (referred to in ASA 402 as a type 1 report) 

a report that comprises:

(i) A description, prepared by management of the service organisation, of the service organisation’s system, control objectives and related controls that have been designed and implemented as at a specified date; and

(ii) A report by the service auditor with the objective of conveying reasonable assurance that includes the service auditor’s opinion on the description of the service organisation’s system, control objectives and related controls and the suitability of the design of the controls to achieve the specified control objectives.

Report on the description and design of controls at a service organisation (referred to in this ASAE as a “type 1 report”) (in the context of ASAE 3402)

a report that comprises: 

(i) The service organisation’s description of its system; 

(ii) A written statement by the service organisation that, in all material respects, and based on suitable criteria: 

a The description fairly presents the service organisation’s system as designed and implemented as at the specified date; and 

b The controls related to the control objectives stated in the service organisation’s description of its system were suitably designed as at the specified date; and

(iii) A service auditor’s assurance report that conveys a reasonable assurance conclusion about the matters in a b above. 

Report on the description, design, and operating effectiveness of controls at a service organisation (referred to in this Auditing Standard as a type 2 report) 

a report that comprises:

(i) A description, prepared by management of the service organisation, of the service organisation’s system, control objectives and related controls, their design and implementation as at a specified date or throughout a specified period and, in some cases, their operating effectiveness throughout a specified period; and

(ii) A report by the service auditor with the objective of conveying reasonable assurance that includes:

a. The service auditor’s opinion on the description of the service organisation’s system, control objectives and related controls, the suitability of the design of the controls to achieve the specified control objectives, and the operating effectiveness of the controls; and

b. A description of the service auditor’s tests of the controls and the results thereof.

Report on the description, design and operating effectiveness of controls at a service organisation (referred to in this ASAE as a “type 2 report”) (in the context of ASAE 3402) 

a report that comprises:

(i) The service organisation’s description of its system;

(ii) A written statement by the service organisation that, in all material respects, and based on suitable criteria:

a The description fairly presents the service organisation’s system as designed and implemented throughout the specified period;

b The controls related to the control objectives stated in the service organisation’s description of its system were suitably designed throughout the specified period; and

c The controls related to the control objectives stated in the service organisation’s description of its system operated effectively throughout the specified period; and 

(iii) A service auditor’s assurance report that: 

a. Conveys a reasonable assurance conclusion about the matters in (ii)a–c above; and 

b. Includes a description of the tests of controls and the results thereof.

Reporting period  the period for which a water accounting report is prepared.
Representation  a statement by the responsible party, either oral or written, provided to the assurance practitioner to confirm certain matters or to support other evidence. A representation is additional to but may be provided in combination with the responsible party’s or evaluator’s Statement provided in an attestation engagement.
Representation (in the context of ASAE 3500)  a statement by the responsible party, either oral or written, provided to the assurance practitioner to confirm certain matters or to support other evidence.
Representation letter  a letter prepared by the entity at the request of the auditor that confirms to the auditor specific matters relating to the comfort letter engagement.
Requesting parties  third party underwriter(s) and/or other parties involved with the entity’s securities offering (such as financial intermediaries, buyers, sellers, brokers or selling agents or group or component auditors) that have agreed to be bound by the auditor’s engagement letter (including by authorising the lead manager to sign on their behalf) in order to request the auditor’s comfort letter, and may receive the comfort letter if they sign the auditor’s engagement letter.
Responsible party  the party(ies) responsible for the underlying subject matter.
Responsible party (in the context of ASAE 3100)  the party(ies) responsible for the underlying subject matter, being the compliance activity(ies) in a compliance engagement.
Responsible party (in the context of ASAE 3150)  the party responsible for the underlying subject matter, being the design, description, implementation or operating effectiveness of controls in an assurance engagement on controls.
Responsible party (in the context of ASAE 3450)  those charged with governance of the entity (ordinarily the Board of Directors), who are also responsible for the preparation and issuance of the financial information included in the document. It may also mean the management of the entity in circumstances where the assurance practitioner has been requested to provide assurance to those charged with governance in relation to financial information prepared by management. Alternatively it may also mean the party responsible for the preparation of the financial information. The responsible party may be different from the party that is the engaging party.
Responsible party (in the context of ASAE 3500) the party responsible for the performance of all or part of the activity, which is the subject matter of the performance engagement.
Responsible party (in the context of ASAE 3610)  those charged with governance or management, as appropriate, responsible for the preparation and presentation of the general purpose water accounting report.
Responsible party of the entity  those charged with governance of the entity (ordinarily the Board of Directors) who are responsible for the preparation of the offering document, and who engage the auditor to issue a comfort letter to the requesting parties and provide a copy to the responsible party.
Review engagement  (see Limited assurance engagement)
Review procedures  the procedures deemed necessary to meet the objective of a review engagement, primarily enquiries of entity personnel and analytical procedures applied to financial data.
Revised Legislation  Corporations Amendment (Corporate Reporting Reform) Act 2010.
Risk assessment procedures  the audit procedures performed to obtain an understanding of the entity and its environment, including the entity’s internal control, to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial report and assertion levels.
Risk of material misstatement 

the risk that the financial report is materially misstated prior to audit. This consists of two components, described as follows at the assertion level:

(i) Inherent risk means the susceptibility of an assertion about a class of transaction, account balance or disclosure to a misstatement that could be material, either individually or when aggregated with other misstatements, before consideration of any related controls.

(ii) Control risk means the risk that a misstatement that could occur in an assertion about a class of transaction, account balance or disclosure and that could be material, either individually or when aggregated with other misstatements, will not be prevented, or detected and corrected, on a timely basis by the entity’s internal control.

Risk of material misstatement (in the context of ASAE 3000)  the risk that the subject matter information is materially misstated prior to the engagement.