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A NEGATIVE assurance opinion or statement indicates that, based on the procedures performed and evidence obtained, the assurance provider did not identify any reasons to believe that the subject matter does not conform to the applicable criteria. This form of opinion does not provide absolute assurance but rather limited assurance, suggesting that nothing came to the auditor's attention that causes them to believe the subject matter is not fairly stated.References:

AICPA Auditing Standards

IIA Standards for the Professional Practice of Internal Auditing

The parameters of an assessment include Scope, Criteria, and Nature of Testing. These elements define the boundaries and focus of the assessment:

Scope:Defines the areas, processes, and activities to be assessed.

Criteria:Specifies the standards, policies, and regulations against which the assessment will be conducted.

Nature of Testing:Describes the types and extent of testing procedures that will be employed to gather evidence and evaluate compliance and performance.

These parameters ensure that the assessment is well-structured, targeted, and aligned with the objectives and requirements of the organization.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Internal Control – Integrated Framework

To evaluate the operating effectiveness of controls, conducting control testing is essential. Control testing involves examining whether controls are operating as intended and are effective in mitigating risks. This type of testing assesses the design and implementation of controls to ensure they are functioning properly and achieving their intended purpose. Substantive testing, on the other hand, focuses on verifying the accuracy and validity of transactions and data, rather than the effectiveness of controls.References:

COSO Internal Control – Integrated Framework

ISO 31000:2018 - Risk management – Guidelines

Governance is defined as "externally directing, controlling and evaluating an entity, process, or resource". It involves establishing policies, and continuous monitoring of their proper implementation, by the members of the governing body of an organization. It ensures that the entity is operating effectively and in alignment with its objectives and regulatory requirements. Governance encompasses a wide range of activities, including strategic planning, decision-making, and oversight, all aimed at achieving the entity's goals while managing risk and ensuring compliance.References:

ISO 38500:2015 - Information technology - Governance of IT for the organization

OECD Principles of Corporate Governance

The level of assurance required for an assessment can vary depending on the purpose, scope, and objectives of the assessment. It is crucial to define the desired level of assurance (low, medium, or high) before beginning the assessment to ensure that the approach, methodology, and resources allocated are appropriate. This helps in setting clear expectations and aligning the assessment process with the organization's risk tolerance and regulatory requirements.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Enterprise Risk Management – Integrating with Strategy and Performance

A written report by an assurance professional is most likely to be the most objective source of evidence. Assurance professionals are trained to conduct evaluations impartially, following standardized methodologies and best practices. Their reports are based on documented evidence and systematic analysis, ensuring a high level of objectivity and reliability compared to vocalized statements or reports by process owners, who may have biases or conflicts of interest.References:

IIA Standards for the Professional Practice of Internal Auditing

ISO 19011:2018 - Guidelines for auditing management systems

The level of assurance risk targeted by an assessment should be driven by the assessment's purpose and parameters. Not all assessments require very low or zero assurance risk; some may appropriately target higher levels of assurance risk depending on the context and objectives. The purpose and scope of the assessment, as well as the risk tolerance of the organization, will dictate the acceptable level of assurance risk. This approach ensures that resources are allocated efficiently and that the assessment is tailored to the specific needs and risks of the organization.References:

ISO 31000:2018 - Risk management – Guidelines

COSO Enterprise Risk Management – Integrating with Strategy and Performance

Risk is defined as a measure of the desirable effect of uncertainty on objectives. According to the ISO 31000 standard, risk is "the effect of uncertainty on objectives" which can be either positive (opportunity) or negative (threat). This definition encompasses the uncertainty that can impact the achievement of goals and objectives. It highlights that risk is not just about potential losses but also about potential gains that come from taking risks.References:

ISO 31000:2018 - Risk management – Guidelines

NIST SP 800-30 Rev. 1 - Guide for Conducting Risk Assessments

Any and all of the listed roles can conduct assurance activities provided they have the appropriate purpose and parameters defined. Assurance activities are not limited to a specific function but can be performed by various roles within an organization, such as Internal Audit, Compliance, Risk Management, and Information Security, among others. The key is that these roles must operate with the proper scope, authority, and independence to provide credible and reliable assurance.References:

COSO Internal Control – Integrated Framework

ISO 31000:2018 - Risk management – Guidelines

Including the personnel who perform the work being assessed in the planning process is important because they possess valuable insights and knowledge about the processes and controls in place. Their involvement helps to ensure that the assessment is accurately scoped and relevant parameters are set. They can provide context and clarify operational details, contributing to a more effective and targeted assessment. Moreover, their engagement can foster a cooperativeenvironment and facilitate smoother assessment execution.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Internal Control – Integrated Framework