Guidance on assurance services.

The International Federation of Accountants released for exposure guidance on assuring the credibility of financial information. The exposure draft, Reporting on the Credibility of Information, was approved by the IFAC international auditing practices committee (IAPC). Comments are due by February 15, 1998.

"There is a worldwide demand for services that assure the credibility of information," said Pobert Roussey, IAPC chairman. "This guidance would help establish accountants as the primary providers of these assurance services"

The ED examines the framework and general principles of assuring information and builds on existing audit guidance, including that on the audit function to enhance the credibility of financial statements. The framework provided in the ED identifies the elements of an engagement to report on the credibility of information. It is intended to include current practices and it examines how those practices can be expanded.

The ED also provides guidance on the objectives and principles governing the assurance services engagement. For example, the guidance asserts that accountants must follow the IFAC Code of Ethics_for Professional Accountants. It also explains what process accountants should use for an assurance services engagement, from acceptance through quality control, planning and conduct, obtaining evidence and documentation.

The ED includes an appendix of example reports that comply with the framework and the general principles. Comments on the ED should be addressed to John Gruner, IFAC director general. Copies are available from the IFAC by phone at 212-302-5952 or on the Web at http://www.ifac.org.