| A2. | A condition for acceptance of an assurance engagement is that the criteria referred to in the definition of an assurance engagement are suitable and available to intended users.9 Criteria are the benchmarks used to evaluate or measure the subject matter including, where relevant, benchmarks for presentation and disclosure. Suitable criteria enable reasonably consistent evaluation or measurement of a subject matter within the context of professional judgment. For purposes of the ISAs (UK and Ireland), the applicable financial reporting framework provides the criteria the auditor uses to audit the financial statements, including where relevant their fair presentation. |
| A3. | Without an acceptable financial reporting framework, management does not have an appropriate basis for the preparation of the financial statements and the auditor does not have suitable criteria for auditing the financial statements. In many cases the auditor may presume that the applicable financial reporting framework is acceptable, as described in paragraphs A8-A9. |
| 9 "International Framework for Assurance Engagements," paragraph 17(b)(ii). |
| The "International Framework for Assurance Engagements" has not been promulgated by the APB for application in the UK and Ireland. |
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