slide auditung chapter 25 arens

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2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 - 1

Other Assurance

er!ices

"ha#ter 25


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2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 22

$earning Ob%ecti!e 1

&nderstand the le!el '( assurance

and e!idence re)uire*ents ('r

re!ie+ and c'*#ilati'n ser!ices


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2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 -

.he standards ('r c'*#ilati'ns and

re!ie+s '( (inancial state*ents are

called Statements on Standardsfor Accounting and Review

Services (SSARS).

e!ie+ and "'*#ilati'n

er!ices


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elati'nshi# Bet+een E!idence

Accu*ulati'n and Assurance Attained

Level

of

Assurance

Attained

None

(Compilation)

Moderate(Review)

High(Audit)

Minimal(Compilation)

Significant(Review)

!tensive(Audit)

Amount of vidence Accumulated


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A re!ie+ ser!ice A re!ie+ engage*ent

is designed t' all'+ the acc'untant t' e3#ress

li*ited assurance that the (inancial state*entsare in acc'rdance +ith 4AAP

e!ie+ er!ices


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Pr'cedures uggested

('r e!ie+s

Obtain 6n'+ledge '( the acc'unting

#rinci#les '( the client7s industry

Obtain 6n'+ledge '( the client

a6ein)uiries '( *anage*ent

Per('r* analytical #r'cedures

Obtain letter '( re#resentati'n


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1 :isc'!er the c'*#any7s #r'cedures ('r

rec'rding, classi(ying, and su**ari;ing

transacti'ns and discl'sing in('r*ati'n

in the state*ents

2


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"'*#ilati'n er!ices

A c'*#ilati'n ser!ice engage*ent is de(ined in

A as 'ne in +hich acc'untants #resent

t' a client 'r third #arty, (inancial state*ents thatthe acc'untant has #re#ared

.he "PA (ir* d'es n't e3#ress any assurance

'n the state*ents


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2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - ==

P'ssess 6n'+ledge ab'ut the acc'unting

#rinci#les and #ractices '( the client7s industry

>n'+ the client, including the nature '( itsbusiness transacti'ns, acc'unting rec'rds,

and c'ntent '( its (inancial state*ents

e)uire*ents ('r "'*#ilati'n

Establish an understanding +ith the client ab'ut

the nature and li*itati'ns '( the ser!ices t' be

#er('r*ed and a descri#ti'n '( the re#'rt


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a6e in)uiries t' deter*ine +hether

the client7s in('r*ati'n is satis(act'ry

ead the c'*#iled (inancial state*entsand be alert ('r any 'b!i'us '*issi'ns

'r err'rs in arith*etic and 4AAP

e)uire*ents ('r "'*#ilati'n


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1"'*#ilati'n +ith (ull discl'sure

2 "'*#ilati'n that '*its substantially all discl'sures

?'r* '( "'*#ilati'n e#'rt

"'*#ilati'n +ith'ut inde#endence


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:escribe s#ecial engage*ents

t' re!ie+ interi* (inancial

in('r*ati'n ('r #ublic

c'*#anies


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$i6e re!ie+s under A, apublic company

interim reviewincludes (i!e re)uire*ents ('r

re!ie+ ser!ice engage*ents

e!ie+ '(


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.he re!ie+ is c'nducted acc'rding t' the

standards '( the P"AOB and there is n'

re(erence t' the A in a re!ie+ re#'rt

e!ie+ '(


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$earning Ob%ecti!e

:istinguish A


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Attestati'n standards

.y#es '( attestati'n engage*ents

$e!els '( ser!ice

Attestati'n Engage*ents


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.y#es '( Engage*ents and

elated e#'rts

!amination

Review

Agreed"upon

procedures

!tensive

Significant

#ar$ing

High

Moderate

#ar$ing

%ositive

Negative

&indings

'eneral

'eneral

Limited

$pe ofngagement

Amount ofvidence

Level ofAssurance

&orm ofConclusion istri*ution


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$earning Ob%ecti!e

&nderstand the nature '(

WebTrustassurance ser!ices


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2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 1=1=


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WebTruster!ices

.he WebTrustser!iceis a s#eci(ic ser!ice

de!el'#ed under the br'ader Trust Services

#rinci#les and criteria %'intly issued in 200by the A


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?i!e TrustServicesPrinci#les

Securit$ he s$stem is protected against

unauthori+ed access

Availa*ilit$ he s$stem is availa*le for operation

and use as committed or agreed%rocessing

integrit$

S$stem processing is complete,

accurate, timel$, and authori+ed

-nline

privac$

%ersonal information o*tained as a result of

e"commerce is collected, used, disclosed,and retained as committed or agreed

Confidentialit$ nformation designated as confidential

is protected as committed or agreed


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&nderstand the nature '(

SysTrustassurance ser!ices


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$earning Ob%ecti!e

:escribe s#ecial engage*ents

t' attest t' #r's#ecti!e (inancial

state*ents


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Pr's#ecti!e ?inancial

tate*ents

?'recasts and #r'%ecti'ns

&se '( #r's#ecti!e (inancial state*ents

.y#es '( engage*ents

E3a*inati'n '( #r's#ecti!e (inancial state*ents


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:escribe agreed-u#'n #r'cedures

engage*ents


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.he audit is li*ited t' certain s#eci(ic

audit #r'cedures

Agreed-'n Pr'cedures

Engage*ents

.hese are re(erred t' as #r'cedures

and (indings engage*ents

.he As deal +ith (inancial state*entite*s, +hereas the AEs deal +ith

n'n(inancial state*ent *atters


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:escribe 'ther audit and li*ited

assurance engage*ents related

t' hist'rical (inancial state*ents


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2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 2=2=

Other Audits 'r $i*ited

Assurance Engage*ents

Other c'*#rehensi!e basis '( acc'unting

#eci(ied ele*ents, acc'unts, 'r ite*s

:ebt c'*#liance letters and si*ilar re#'rts


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Other "'*#rehensi!e

Basis '( Acc'unting

"ash 'r *'di(ied cash basis

Basis used t' c'*#ly +ith the

re)uire*ents '( a regulat'ry agency


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Audit'rs are '(ten as6ed t' audit and issue

re#'rts in s#eci(ic as#ects '( (inancial

state*ents

#eci(ied Ele*ents,

Acc'unts, 'r


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1 ateriality is de(ined in ter*s '( the ele*ents,

acc'unts, 'r ite*s being audited rather than('r the '!erall state*ents

#eci(ied Ele*ents,

Acc'unts, 'r


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.he engage*ent and re#'rt sh'uld be

li*ited t' c'*#liance *atters the

audit'r is )uali(ied t' e!aluate

.he audit'r sh'uld #r'!ide a debt

c'*#liance letter 'nly ('r a client

('r +h'* the audit'r has d'ne anaudit '( the '!erall (inancial state*ents

:ebt "'*#liance $etters

and i*ilar e#'rts


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.he audit'r7s '#ini'n is in the ('r* '( a

negative assurance, stating that n'thing

ca*e t' the audit'r7s attenti'n that +'uldlead the audit'r t' belie!e there +as

n'nc'*#liance

:ebt "'*#liance $etters

and i*ilar e#'rts


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2008 Prentice Hall Business Publishing2008 Prentice Hall Business Publishing Auditing 12/eAuditing 12/e Arens/Beasley/ElderArens/Beasley/Elder 25 - 5

End '( "ha#ter 25

slide auditung chapter 25 arens

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