What is the fundamental requirement when conducting an assurance engagement?

When conducting an assurance engagement, one of the fundamental requirements is independence from the entity being audited. This independence is crucial because it ensures that the auditor can provide an unbiased opinion on the subject being evaluated - be it financial statements, internal controls, or other specified subject matter. Independence helps establish credibility and trust in the findings and conclusions of the audit. If the auditor lacks independence, it undermines the integrity of the engagement and may lead to conflicts of interest or biased reports. This principle is a cornerstone of auditing standards and practices globally, promoting objectivity, reliability, and the overall quality of the assurance service provided.

In contrast, possessing a CPA license, while important for legal and professional practice, is not a specific requirement for conducting all assurance engagements. Evaluating the effectiveness of internal controls, while an essential part of certain types of audits, is not universally applicable to all assurance engagements. Finally, allowing for client feedback can be a part of the engagement process but is not a fundamental requirement for independence or the integrity of the audit findings.