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Module A

Module A. 2. 1. Assurance Services. Risk assessmentBusiness performance measurementInformation systems reliabilityElectronic commerceThird party reimbursement maximizationXBRL reportingCustomer satisfaction surveys. ACCT 4080. Module A. 3. 2. Compilation and Review. Performed by an accounta

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Module A

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    1. Module A 1 Module A Other Public Accounting Services ACCT 4080

    2. Module A 2 1. Assurance Services Risk assessment Business performance measurement Information systems reliability Electronic commerce Third party reimbursement maximization XBRL reporting Customer satisfaction surveys ACCT 4080

    3. Module A 3 2. Compilation and Review Performed by an “accountant” Levels of assurance Audit positive assurance (reasonable assurance) Review moderate assurance (limited) (negative) Compilation no assurance (Disclaimer of Opinion) Applicable standards SSARSs (AR) SSARS No. 19 – December 15, 2010 ACCT 4080

    4. Module A 4 2. Compilation & Review (continued) Compilation of financial statements A service, the objective of which is to assist management in presenting financial information in the form of financial statements, information that is the representation of management without undertaking to obtain any assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework. ACCT 4080

    5. Module A 5 2. Compilation & Review (continued) To compile financial statements, the accountant should possess knowledge of the following: general understanding of the nature of entity's industry and its business transactions form of its accounting records stated qualifications of its accounting personnel applicable financial reporting framework form and content of the financial statements ACCT 4080

    6. Module A 6 2. Compilation & Review (continued) Compilation procedures required obtain engagement letter understand entity‘s industry and business read f/s looking for obvious accounting principle or accuracy errors however, no responsibility to conduct audit procedures to gather any evidence about accuracy or completeness of f/s or to evaluate internal control Okay if not independent Okay if financial statements omit disclosures ACCT 4080

    7. Accountant’s Compilation Report We have compiled the accompanying balance sheet of Sample Company as of December 31, 2011, and the related statements of income, retained earnings, and cash flows for the year then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with U.S. generally accepted accounting principles.   Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the U.S. and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.   Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. ACCT 4080 Module A 7

    8. Module A 8 2. Compilation & Review (continued) Review of financial statements A service, the objective of which is to obtain limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework. ACCT 4080

    9. Module A 9 2. Compilation & Review (continued) To review financial statements, the accountant should possess knowledge of the following same as for a compilation, and general understanding of the entity's organization, its operating characteristics, and the nature of its assets, liabilities, revenues, and expenses also, general knowledge of the entity's production, distribution, and compensation methods, types of products and services, operating locations, and material transactions with related parties ACCT 4080

    10. Module A 10 2. Compilation & Review (continued) Review procedures required written engagement letter understanding of the client’s industry and business (but no evaluation of internal control) analytical procedures inquiry of management written management representations Accountant must be independent Financial statements must contain all disclosures ACCT 4080

    11. Accountant’s Review Report We have reviewed the accompanying balance sheet of Sample Company as of December 31, 2011, and the related statements of income, retained earnings, and cash flows for the year then ended. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.   Our responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The standards require us to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. We believe that the results of our procedures provide a reasonable basis for our report.   Based on our review, we are not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. ACCT 4080 Module A 11

    12. Module A 12 Review of Interim Fin Stmts Review of interim financial statements Required by the SEC Reviews of interim statements follow the SASs (SAS 116), not SSARSs Not required by GAAP ACCT 4080

    13. Module A 13 4. Attestation Engagements Definition of attest engagement Report on the subject matter, or an assertion about the subject matter, that is the responsibility of another party Performed by a “practitioner” Types of services examinations reviews agreed-upon procedures ACCT 4080

    14. Module A 14 4. Attestation Engagements Levels of assurance examination similar to an audit high level of assurance (reasonable assurance) review moderate level of assurance not allowed on certain engagements agreed upon procedures assurance depends on procedures performed Applicable standards SSAEs (AT) ACCT 4080

    15. Module A 15 4. Attestation Engagements Types of attestation subject matter Agreed Upon Procedures Engagements (AT 201) scope less than audit report – no opinion or negative assurance (list procedures and findings) limited use report Financial Forecasts and Projections (AT 301) definitions limited use reports (except some forecasts can be general use report) Reporting on Pro Forma Financial Information (AT 401) definitions limited use reports ACCT 4080

    16. Module A 16 4. Attestation Engagements Types of attestation subject matter Reporting on an Entity’s Internal Control over Financial Reporting (AT 501) no reviews mostly same as PCAOB standards Compliance Attestation (AT 601) no reviews Management’s Discussion and Analysis (AT 701) Service Organizations (AT 801) ACCT 4080

    17. Module A 17 5. Special Reports Follow SASs (auditing standards) Special Purpose Framework Statements (SPF) previously called OCBOA statements regulatory basis tax basis cash basis modified cash basis Specific elements, accounts, or items in a financial statement Reporting on application of accounting principles (opinion shopping) ACCT 4080

    18. Module A 18 6. Future Services XBRL ACCT 4080

    19. Module A 19 Review Questions for Discussion A.1 A.3 A.4 A.5 A.6 A.7 A.9 A.10 ACCT 4080

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