1 / 15

NON-ASSURANCE SERVICES

NON-ASSURANCE SERVICES. ACT 3142. ATTESTATION ENGAGEMENTS. Assurance svcs = independent professional svcs that improve the quality of information for decision makers. Currently = variety of audit-like or attest svcs for different purposes. ATTESTATION ENGAGEMENTS.

oberon
Download Presentation

NON-ASSURANCE SERVICES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. NON-ASSURANCE SERVICES ACT 3142

  2. ATTESTATION ENGAGEMENTS • Assurance svcs = independent professional svcs that improve the quality of information for decision makers. • Currently = variety of audit-like or attest svcs for different purposes

  3. ATTESTATION ENGAGEMENTS • In AE = audit reports on the reliability of information or an attestation – another party • E.g. A bank requests an auditor to report in writing whether an audit client has adhered to all requirements of a loan agreement

  4. ATTESTATION ENGAGEMENTS • Important prerequisite = the practitioner needs to have adequate knowledge of the subject matter • E.g. attestation of a company’s compliance with environmental protection laws. • E.g. SMS nomination => Akademi Fantasia, Juara Lagu TV3, Malaysian Idol, many others

  5. LEVEL OF SERVICE • In Malaysia, ISAs = 4 levels of engagement and related forms of conclusions: • Prospective financial statements examination (ISA 810) • Reviews engagement (ISA 910) • Agreed-upon procedures (ISA 920) • Compilation of financial information (ISA 930)

  6. EXAMINATION • An examination results in a conclusion that is in a positive form. • Make direct statement – conform to the applicable criteria • Distribution of report = Unrestricted

  7. REVIEW • In a review, the practitioner provides a conclusion in the form of negative assurance • Report – whether the financial statements are prepared in accordance with accounting stds. • Distribution of report = Unrestricted

  8. AGREED-UPON PROCEDURES • The procedures to be performed are agreed upon by the practitioner, the responsible party making the assertions, and the specific persons who are the intended users of the practitioner’s report. • Report – limited distribution.

  9. ATTESTATION STANDARDS • 4 common types of engagements – detailed attestation stds have been issued: • Web Trust Services • SysTrust Services • Prospective Financial Statements • Agreed-upon procedures

  10. WebTrust Services • A client engages an audit to provide reasonable assurance that a company’s web site complies with certain Trust Services principles and criteria for one or more aspects of e-commerce activities. • A site that meets the Trust Services principle is eligible to display the WebTrust electronic seal on its transaction or order page. • The presumption is that Web site users believe the WebTrust seal adds credibility to the information in the website.

  11. SysTrust Services • The AICPA and CICA = developed the SysTrust Service to provide assurance that a system is reliable. • In a SysTrustengagement – the SysTrustlicensed accountant evaluates a company’s computer system using Trust Services principles and criteria and determines whether controls over system exist.

  12. Prospective Financial Statements • Forecasts • Projections • Covered in last week’s lecture!!!

  13. Agreed-Upon Procedures Engagements • AUPE = auditor and management or a third party user agreed that the audit will be limited to certain specific audit procedures. • E.g. the auditor performed agreed-upon procedures on the gross sales account for a lease agreement.

  14. Review and Compilation Services • Entities such as partnership and sole-proprietorship – financial statements reviewed and compiled. • Preparation of financial statements – internal / external • No audit • No assurance expressed

  15. Review of Interim Financial Information for Public Companies • Auditor – perform review procedures – footnote information.

More Related