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Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8 th Edition

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8 th Edition. William C. Boynton California Polytechnic State University at San Luis Obispo Raymond N. Johnson Portland State University. Chapter 20 – Attest and Assurance Services, and Related Reports.

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Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8 th Edition

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  1. Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Edition William C. Boynton California Polytechnic State University at San Luis Obispo Raymond N. Johnson Portland State University Chapter 20 – Attest and Assurance Services, and Related Reports

  2. Chapter Overview

  3. Universe of Assurance Services

  4. Levels of Assurance • Audit or Examination-level Assurance • Review-level Assurance • Negative Assurance • Agreed-upon Procedures • No Assurance • Accounting and Compilation Services

  5. Assurance/Service Matrix

  6. Types of Engagements • Statements on Auditing Standards (SAS) • Statements on Standards for Attestation Engagements (SSAE) • Statements on Standards for Accounting and Review Services (SSARS)

  7. Other SAS Engagements – Special Reports • Other Comprehensive Bases of Accounting • Specified Elements, Accounts, or Items of a Financial Statement • Compliance Reports Related to Audited Financial Statements

  8. Study Break • This level of assurance intends to give the positive expression of opinion by the CPA regarding an assertion by management. • Audit-level assurance • Review-level assurance • Agreed-upon procedures • No assurance A. Audit-level assurance

  9. Study Break • This defines the services associated with the review or the compilation of financial statements of a nonpublic entity. • SAS • SSAE • SSARS • GAAS C. SSARS

  10. Accepting and Performing Attest Engagements • Attest Engagement • Gathers evidence • Objectively assesses the measurements and communication • Reports the findings • Attestation Standards • SSAE 1 (Figure 20-7) • General Standards • Standards of Fieldwork • Standards of Reporting

  11. Engagements Performed Under Attestation Standards • SSAE 101 Engagements • CPA WebTrust • Business and information privacy practices • Transaction integrity • Information protection • CPA SysTrust • Availability • Security • Integrity • Maintainability

  12. Engagements Performed Under Attestation Standards • Agreed-upon Procedure Engagements • Report of Procedures and Findings • Reporting on Prospective Financial Information • Types of Prospective Financial Information • Financial Forecast • Financial Projection • Types of Services • Compilation • Examination • Application of Agreed-upon Proceures

  13. Engagements Performed Under Attestation Standards • Compliance Attestation • Examination Engagements • Nature of Compliance Requirements • Nature and Frequency of Noncompliance • Qualitative Considerations • Agreed-upon Procedure Engagements • Compliance with Specified Requirements • Effectiveness of Entity’s Internal Control • Both of the Above

  14. Accounting and Review Services • Nonpublic Companies • Review of Financial Statements • Review Engagement • Compilation of Financial Statements • Compilation Engagement

  15. Other Assurance Opportunities • CPA Risk Advisory • Business Risk Management • Identification and assessment of primary potential risks • Independent assessment of identified risks • Evaluate system of identification and limitation of risks

  16. Other Assurance Opportunities • CPA Performance View • Performance Measurement • Assess whether systems a properly measuring activities • Evaluate employees • Measure actual performance against objectives • Identify areas providing best opportunities for improvement

  17. Other Assurance Opportunities • CPA Eldercare • Attestation Engagements • Direct Services • Consulting Services

  18. Study Break • All of the following are risks associated with doing business electronically, except: • Business and information privacy practices • Transaction integrity • Information protection • All of the above D. All of the above

  19. Study Break 4. Of the four SysTrust Principles, this one describes the system being protected against unauthorized physical and logical access. • Availability • Security • Integrity • Maintainability B. Security

  20. Study Break • This type of prospective financial information presents, to the best of the responsible party’s knowledge and belief, an entity’s expected financial position, results of operations, and cash flows. • Budget • Financial forecast • Financial projection • All of the above B. Financial forecast

  21. Study Break • This is the AICPA’s branded version of performance measure. • CPA Compilations • CPA Risk Advisory • CPA Performance View • CPA Eldercare C. CPA Performance View

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