Modern Auditing:Assurance Services and the Integrity of Financial Reporting, 8th EditionWilliam C. BoyntonCalifornia Polytechnic State University at San Luis ObispoRaymond N. JohnsonPortland State UniversityChapter 20 Attest and Assurance Services, and Related Reports

Chapter Overview

Universe of Assurance Services

Levels of AssuranceAudit or Examination-level Assurance

Review-level AssuranceNegative Assurance

Agreed-upon Procedures

No AssuranceAccounting and Compilation Services

Assurance/Service Matrix

Types of EngagementsStatements on Auditing Standards (SAS)

Statements on Standards for Attestation Engagements (SSAE)

Statements on Standards for Accounting and Review Services (SSARS)

Other SAS Engagements Special ReportsOther Comprehensive Bases of Accounting

Specified Elements, Accounts, or Items of a Financial Statement

Compliance Reports Related to Audited Financial Statements

Study BreakThis level of assurance intends to give the positive expression of opinion by the CPA regarding an assertion by management.Audit-level assuranceReview-level assuranceAgreed-upon proceduresNo assurance

A. Audit-level assurance

Study BreakThis defines the services associated with the review or the compilation of financial statements of a nonpublic entity.SASSSAESSARSGAAS

C. SSARS

Accepting and Performing Attest EngagementsAttest EngagementGathers evidenceObjectively assesses the measurements and communicationReports the findings

Attestation StandardsSSAE 1 (Figure 20-7)General StandardsStandards of FieldworkStandards of Reporting

Engagements Performed Under Attestation StandardsSSAE 101 EngagementsCPA WebTrustBusiness and information privacy practicesTransaction integrityInformation protection

CPA SysTrustAvailabilitySecurityIntegrityMaintainability

Engagements Performed Under Attestation StandardsAgreed-upon Procedure EngagementsReport of Procedures and Findings

Reporting on Prospective Financial InformationTypes of Prospective Financial InformationFinancial ForecastFinancial ProjectionTypes of ServicesCompilationExaminationApplication of Agreed-upon Proceures

Engagements Performed Under Attestation StandardsCompliance AttestationExamination EngagementsNature of Compliance RequirementsNature and Frequency of NoncomplianceQualitative Considerations

Agreed-upon Procedure EngagementsCompliance with Specified RequirementsEffectiveness of Entitys Internal ControlBoth of the Above

Accounting and Review ServicesNonpublic CompaniesReview of Financial StatementsReview Engagement

Compilation of Financial StatementsCompilation Engagement

Other Assurance OpportunitiesCPA Risk AdvisoryBusiness Risk ManagementIdentification and assessment of primary potential risks

Independent assessment of identified risks

Evaluate system of identification and limitation of risks

Other Assurance OpportunitiesCPA Performance ViewPerformance MeasurementAssess whether systems a properly measuring activities

Evaluate employees

Measure actual performance against objectives

Identify areas providing best opportunities for improvement

Other Assurance OpportunitiesCPA EldercareAttestation Engagements

Direct Services

Consulting Services

Study BreakAll of the following are risks associated with doing business electronically, except:Business and information privacy practicesTransaction integrityInformation protectionAll of the above

D. All of the above

Study Break4. Of the four SysTrust Principles, this one describes the system being protected against unauthorized physical and logical access.AvailabilitySecurityIntegrityMaintainability

B. Security

Study BreakThis type of prospective financial information presents, to the best of the responsible partys knowledge and belief, an entitys expected financial position, results of operations, and cash flows.BudgetFinancial forecastFinancial projectionAll of the above

B. Financial forecast

Study BreakThis is the AICPAs branded version of performance measure.CPA CompilationsCPA Risk AdvisoryCPA Performance ViewCPA Eldercare

C. CPA Performance View