Other Professional Services

Question 1

What are the Attestation Standards

Answer 1

*T-K-C-I-D P-E N-C-R-L

General Standards

1. Technical training in the attest function
2. Knowledge inthe subject matter
3. Criteria - suitable and available (framework)
4. Independence in mental attitude
5. Due professional care

Fieldwork

1. Planning and Supervision
2. Evidence - sufficient

Reporting

1. Nature of the Engagement (examination, review or AUP)
2. Conclusions
3. Reservations - about the engagement or the adequacy of the presentation
4. Limited use - in certain circumstances

Question 2

When should attestation reports be limited?

Answer 2

1. Criteria used to evaluate is limited to certain users who participated in its establishment or have an adequate understanding of it
2. Criteria is only available to specified parties
3. If reporting on subjet matter and there is no written assertion
4. When reporting on agreed upon procedures - restrict to those who had input

Question 3

What is authority for attestation engagements?

Answer 3

The 11 Standards are authoritative

SSAEs are interpretations of the standards and are authoritative

journal, articles, other publications are not authoritative

Question 4

Describe an examination report

Answer 4

Examiniations

1. Material deficiences
   
   1. presentation - qualified or adverse
   2. scope - qualified or disclaimer
2. Can add explanatory or emphasis of matter
3. Describe nature of engagement and scope of work
4. Refer to the applicable professional standards of work performed
5. can be General use

Question 5

Describe review reports

Answer 5

Review

1. Negative assurance
2. Must include a disclaimer of opinion - indicate scope of work is less than examination
3. Identify material deficiences
4. can add explanatory paragraph or emphasis of matter
5. can be general use

Question 6

Describe Agreed upon procedures report

Answer 6

Agreed-upon procedures

1. Conclusions expressed as procedures and findings
2. Must disclaim an opinion
3. Describe nature of engagement
4. Limited use - always
   
   1. communictae directly with specified users
   2. add nonparticipant parties
   3. specified parties take responsiability for the procedures performed
   4. avoid vague terminology
   5. include involovment of internal auditors or clients
   6. Obtain understanding with client for services to be performed and respective responsibilities

Question 7

What types of subject matter can not be reviewed?

Answer 7

1. Forecast and projections
2. Internal control over financial reporting

Question 8

Define Assurance services

Answer 8

Independent professional services that improve the quality or context of information for decisioj=n makers

Assurance includes attestation, which includes auditing

Question 9

What are Trust services and their 5 principles

Answer 9

Trust services

1. WebTrust - provides assurnace about transaction integrity in e-commerce
2. SysTrust - evaluate management’s written assertions about effectivenessof controls over entity’s system

5 Principles

1. Security
2. Availability
3. Processing Integrity
4. Confidentiality
5. Privacy

Question 10

What Re PrimePlus/ElderCare Services

Answer 10

“A unique and customizable package of professional services - both financial and nonfinancial - intended to help older adults maintain, for as long as possible, their desired lifestyle and financial independence.”

Question 11

Describe a MD&A engagement

Answer 11

1. Must have audited the financials to which the MD&A applies to do the engagement
2. express an opinion
   
   1. SEC required elements
      
      1. financial condition
      2. changes in financial condition
      3. results of operation
   2. historical amounts
   3. basis for conclusions
3. 4 assertions
   
   1. occurrence
   2. consistency with the financials
   3. completeness of the explanation
   4. presentation and disclosure
      4.