Ch 12- Audit Related Service

Question 1

Assurance engagements:
-Review of interim financial info for stock exchange
-Examination of financial for bank loan
-Due diligence review (to buy new company)
-Social and environment review (e.g co2)

Answer 1

Assurance level: Limited assurance
Report provided: Negative assurance
Statement: Nothing has come to our attention to suggest …

Question 2

Agreed upon procedures:
-Fraud investigations
-Verifying insurance claim
-Due diligence

Answer 2

Assurance level: No assurance
Report provided: Factual finding
Statement: (NO OPINION a client makes decision)

Question 3

Audit

Answer 3

Assurance level: Reasonable but not 100% assurance
Report provided: Positive assurance
Statement: In our opinion the financial statements show a T+F view

Question 4

Conclusions may be:

-Modified
-Unmodified
-Adverse
-Disclaimer