ICAEW ARF · Chapter 1 · Question 7 of 10
Which of the following engagements is NOT an assurance engagement?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Preparing a client's VAT return from its accounting records
Explanation
Preparing a VAT return is a compilation or tax service: the accountant prepares information but does not evaluate it against criteria or express a conclusion. Reviews of interim information, examinations of prospective financial information and statutory audits all involve the practitioner gathering evidence and giving a conclusion to intended users, so they are assurance engagements.
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