Kế toán, kiểm toán - Auditing & assurance services

Auditing & Assurance Services, 6eModule AOther Public Accounting ServicesMod A-*Attestation EngagementsReport on subject matter or assertion about subject matter.Responsibility of another partyResponsible party—acknowledge responsibilityMod A-*Types of Attestation Engagements—Levels of AssuranceExaminationSimilar to an auditHigh level of assuranceReviewModerate (“negative”) level of assuranceNot allowed on certain engagementsAgreed upon proceduresAssurance depends on proceduresMod A-*Attestation StandardsStatements on Standards for Attestation Engagements (SSAEs) from the Auditing Standards Board (ASB) of the AICPASimilar to fundamental auditing principlesPractitioner’s knowledge about subject matterSuitable criteriaEvaluation of internal control not requiredRestricted distributionMod A-*Agreed-Upon Procedures EngagementsConsists of performing procedures normally associated with an audit or special engagementInventory observationConfirmation of receivablesSummarize customer comment cardsScope less than in an audit (responsibility of user)Accountant reports procedures and findingsNo opinion or negative assurance providedMust restrict distribution of report to users who established scope of engagementMod A-*Financial Forecasts and Projections (AT 301)Prospective Financial Information (PFI)Financial information representing the financial position, results of operations, and cash flows for some period of time in the future.Types of PFIFinancial projection: PFI based on the occurrence of one or more hypothetical events that change existing business structure Financial forecast: PFI based on expected conditions and courses of action (e.g., no new distribution center).The company may be negotiating directly with a single user who has requested prospective financial information for use in economic decisions. This is referred to as limited use. Any PFI can be used for limited purposes.The company may be preparing prospective financial statements that it intends to present to a large number of users, none of whom it is negotiating with at the current time. This type of situation is referred to as general use.Mod A-*Reporting on Pro Forma Financial Information (AT 401)Reporting "AS IF" a transaction had occurred by a specific date (retrospectively).Basic engagement objectivesManagement's assumptions on significant effects of transactions are reasonableManagement's assumptions are properly reflected in pro forma adjustmentsThe adjustments are properly made in the pro forma resultsMod A-*Examination of an Entity’s Internal Control over Financial Reporting (AT 501)Necessary ConditionsManagement accepts responsibilityManagement’s evaluation of control is based on suitable and available criteriaManagement’s evaluation of control is supported by sufficient evidenceManagement presents its assertion in a written report that accompanies the auditors’ reportMod A-*Compliance Attestation (AT 601)Examplesdividend limitationsloan limitationsprescribed debt/equity ratioslimitations on geographic operationsExamination made in conjunction with F/S auditMod A-*Mod A-*Management Discussion and Analysis (AT 701)Management Discussion and Analysis (MD&A) accompanies audited financial statements in the annual report.Auditors are required to read the MD&A to ensure that information is consistent with the audited financial statements.Auditors may accept an engagement to perform an examination or review of the MD&A.Mod A-*Service Organizations (AT 801)Third-parties often process transactions for other entities. Many companies use third-parties to process payroll.handle dividend distribution.handle investments (banks, brokerage houses).The controls exist at the third-party providerThe auditors for the users of these services must ensure that those controls at the service provider are adequate. Providers engage auditors to issue a special report concerning the controls.Types of ReportsType 1—Description of controls placed in operationType 2—operating effectiveness (required for AS 5)Included with Service Organization Reports (SOCs)Mod A-*Unaudited Financial StatementsReviews—moderate (negative) assuranceCompilations—no assuranceStatements on Standards for Accounting and Review Services (SSARs) from the AICPA’s Accounting and Review Services CommitteeMod A-*Review EngagementsReview engagement procedures:Written engagement letterUnderstanding of the client’s business.Analytical procedures.Inquiry of managementWritten management representationsAudit documentation must include:Analytical proceduresProcedures used in response to results of analytical procedures InquiriesUnusual matters considered in the engagementWritten representations Mod A-*Review ReportsReports should includeStatement that information is representation of managementA description of the scope of a review engagementLevel of assurance provided --Moderate assurance.The date of completion should be used as the date of the accountant's review report.Each page of the Financial Statements reviewed should include: “SEE ACCOUNTANTS' REVIEW REPORT".Mod A-*Mod A-*Compilation EngagementsDo not have to include footnotes.Accountants do not have to be independent.No assurance provided.The date of completion=the date of the accountant's report.Each page of the compiled financial statements should include: “SEE ACCOUNTANTS' COMPILATION REPORT".Mod A-*Mod A-*Other IssuesReviews, compilations and fraudComparative financial statementsDifferent levels of servicePrescribed formsPredecessor accountantsAdditional paragraphsPersonal financial plansMod A-*Mod A-*Review of Interim Financial InformationFinancial information that covers a period ending on a date other than the entity’s fiscal year end.SEC companies are required to have a review of the interim financial information filed with the SEC.Need to gain sufficient knowledge of the entity’s business and internal control.May have a report on interim financial information Separate from the audited financial statements.Presented as a supplement to audited financial statements.Mod A-*Mod A-*Special ReportsSpecial reports refers to auditors' reports issued in connection with the following:Specified elements, accounts, or items of a financial statementFinancial statements that are prepared in conformity with a special purpose framework (SPF)Reporting on the requirements of appropriate financial reporting frameworksMod A-*Reports on Elements of Financial Statements (AU 805)Independent auditors may be requested to express an opinion on one or more specified elements, accounts, or items of a financial statement.GAAS audit performed.Report similar to audit reportInstead of financial statements, specified elements, accounts, or items are audited.Auditors express an opinion on whether the account, element, or item is fairly stated in accordance with the appropriate framework.If adverse opinion or disclaimer is issued for the financial statements taken as a whole, the auditors may not accept engagement (i.e., the auditors may not reduce scope of service).Mod A-*Special Purpose Frameworks (SPFs) (AU 800)Types of bases that may be usedStatements conforming to regulatory agency accounting rulesBasis used for income tax purposesCash basis or Modified cash basisSome other method required for contractual purposesA GAAS audit is still performedLimited distributionMod A-*Assurance ServicesAssurance Services are independent professional services that improve the quality of information, or its context, for decision makers.Extensible Business Reporting Language (XBRL)Enhanced Business ReportingTrust ServicesWebTrustSysTrustSustainabilityMod A-*