PT CHAPTERS 24-25 OTHER ASSURANCE AND NONASSURANCE SERVICES Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. (CHAPTERS 24 - 25) OTHER ASSURANCE AND NONASSURANCE SERVICES
OTHER AUDIT ATTESTATION SERVICES AND COMIPILATION ENGAGEMENTS SKEPTICISM APPLIES TO ALL TYPES OF ENGAGEMENTS Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 24 OTHER AUDIT ATTESTATION SERVICES, AND COMPILATION ENGAGEMENTS SKEPTICISM APPLIES TO ALL TYPES OF ENGAGEMENTS
Review services Procedures Suggested for reviews d Obtain knowledge of the accounting principles of the client's industry d Obtain knowledge of the client. d Make inquiries of management. 1. Inquire as the companys procedures for recording, classifving, and summarizing transactions and disclosing information in the statements 2. Inquire into actions taken at meetings of stockholders and board of directors 3. Inquire of persons having responsibility for financial and accounting matters. Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. ¶ Obtain knowledge of the accounting principles of the client’s industry. ¶ Obtain knowledge of the client. ¶ Make inquiries of management. 1. Inquire as the company’s procedures for recording, classifying, and summarizing transactions, and disclosing information in the statements. 2. Inquire into actions taken at meetings of stockholders and board of directors. 3. Inquire of persons having responsibility for financial and accounting matters. Review Services Procedures Suggested for Reviews
Procedures suggested for Reviews(continued) Relationship between Evidence Accumulation Perform analytical procedures and Assurance d Obtain letter of representation Attained High (Audit) Level Moderate Assurance (Review) Attained None ( Compilation) Minimal Significant Extensive Compilation) (Review) (Audit) Amount of Evidence accumulated
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Procedures Suggested for Reviews (continued) ¶ Perform analytical procedures ¶ Obtain letter of representation Relationship between Evidence Accumulation and Assurance Attained
Form of report 1. The first paragraph is similar to an audit report except for its reference to a review service rather than an audit 2. The second paragraph notes that a review consists primarily of inquiries and analytical procedures. 3. The third paragraph expresses limited assurance in the form of a negative assurance that "we are not aware of any material modifications that should be made to the financial s Arens, Loebbecke: Auditing, 8/E statements @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Form of Report 1. The first paragraph is similar to an audit report except for its reference to a review service rather than an audit. 2. The second paragraph notes that a review consists primarily of inquiries and analytical procedures. 3. The third paragraph expresses limited assurance in the form of a negative assurance that “we are not aware of any material modifications that should be made to the financial s statements
Requirements for Compilation Posses knowledge about the accounting principles and practice of the clients industry. Know the client: the nature of the clients business transactions, accounting records and employees; and the basis, form, and content of the financialstatements Make inquiries to determine whether the clients information is satisfactory. Read the compiled financial statements and be alert for any obvious omissions or errors in arithmetic and GAAP Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Requirements for Compilation • Posses knowledge about the accounting principles and practice of the client’s industry. • Know the client; the nature of the client’s business transactions, accounting records, and employees; and the basis, form, and content of the financial statements. • Make inquiries to determine whether the client’s information is satisfactory. • Read the compiled financial statements and be alert for any obvious omissions or errors in arithmetic and GAAP
Compilation Form of Report Compilation with full disclosure requires disclosures in accordance with GAAP Compilation that omits substantially all disclosure This type of statement is usually expected to be used primarily for management purposes only Compilation without independence. A CPA firm can issue a compilation report even if it is not independent with respect to the client, as defined by the Code of professional Conduct
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. • Compilation with full disclosure requires disclosures in accordance with GAAP. • Compilation that omits substantially all disclosures. This type of statement is usually expected to be used primarily for management purposes only. • Compilation without independence. A CPA firm can issue a compilation report even if it is not independent with respect to the client, as defined by the Code of Professional Conduct. Compilation Form of Report
INTERIM FINANCIAL INFORMATION FOR PUBLIC COMPANIES SAS 7I Reviews An sas 71 review does not provide a basis for expressing a positive-form opinion. There are ordinarily no tests of the accounting records, independent confirmations, or physical examinations Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. INTERIM FINANCIAL INFORMATION FOR PUBLIC COMPANIES SAS 71 Reviews An SAS 71 review does not provide a basis for expressing a positive-form opinion. There are ordinarily no tests of the accounting records, independent confirmations, or physical examinations
Comprehensive Basis of Accounting Introductory Paragraph ° Scope paragraph Middle paragraph stating the accounting basis Opinion paragraph Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Comprehensive Basis of Accounting • Introductory Paragraph • Scope Paragraph •Middle paragraph Stating the Accounting Basis • Opinion Paragraph
Specified Elements, Accounts or ltems 无法显示该图片 Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Specified Elements, Accounts, or Items
