Mr. Praveen, an articled clerk, wants to know the applicable Engagement Standards in the following situations: An assignment to assist the…

An Assignment to assist the management of Healthy Foods Ltd. With the preparation and presentation of historical financial information without obtaining assurance on that information: Standards on Related Services / The applicable standard is SRS 4410 (Revised) An Assignment to examine prospective financial information of Digital Future Ltd.: Standards on Assurance Engagements / The applicable standard is SAE 3400 Difference between Reasonable assurance engagement and Limited assurance engagement. Reasonable assurance engagement Limited assurance engagement Reasonable assurance engagement provides high level of assurance. Limited assurance engagement provides lower level of assurance than reasonable assurance engagement. It performs elaborate and extensive procedures to obtain sufficient appropriate evidence. It performs fewer procedures as compared to reasonable assurance engagement. It draws reasonable conclusions on the basis of sufficient appropriate evidence. It involves obtaining sufficient appropriate evidence to draw limited conclusions. Example of reasonable assurance engagement is an audit engagement. Example of limited assurance engagement is review engagement.