Overview of Auditing & Other Assurance Services Flashcards
Important roles of professional accountants in economic development
Serve to underpin transparency, accountability, and the rule of law.
Services that professional accountant may engage in.
Assurance engagements
Non-assurance engagements
Activities under an assurance engagements
- Audit of FS
- Review of FS
- Other assurance services
Activities under a non-assurance engagements
1 Compilation procedure
2 Agreed-upon Procedure
3 Tax
4 Management
5 Consultancy/Advisory Services
6 Accounting and data processing
Is an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users
Assurance Engagement
Elements of Assurance Engagements
- Three-party relationship
- Appropriate subject matter
- Suitable criteria
- Sufficient appropriate evidence
- written assurance report in the form appropriate to a reasonable engagement or a limited assurance engagements
Elements of Assurance Engagements
- Three-party relationship
- Appropriate subject matter
- Suitable criteria
- Sufficient appropriate evidence
- written assurance report in the form appropriate to a reasonable engagement or a limited assurance engagements
who are the three-party relationship
a. Practitioner
b. Responsible party
c. Intended users
Independent and professional accountant who provides assurance services.
Practitioner
Responsible for the subject matter information, and may be responsible for the subject matter.
Responsible Party
Peron/s whom the practitioner prepares the assurance report.
Intended Users
It is what the users interested at.
Audited Financial Statement
Underling matter of interest to intended users.
Subject Matter
Information that results from evaluating or measuring the subject matter.
Subject Matter Information
The subject matter may be the recognition, measurement, & disclosure presented in FS.
Financial Performance/Condition
The subject matter may be the key indications of efficiency & effectiveness.
Non-financial Performance’conditions
The subject matter information may be a specification of document.
Physical Characteristics
The subject matter of information may be an assertion about effectiveness.
Systems and Processes
The subject matter may be a statement of compliance or a document of effectiveness
Behavior
These are the standards or benchmarks used to evaluate or measure the subject matter of an assurance engagements.
Suitable Citeria
These are requires for reasonably consistent evaluation or measurement of subject matter within the context of professional judgment.
Suitable Criteria
TRUE OR FALSE
Without the frame of reference of suitable criteria, any conclusion is open to individual interpretation and misunderstanding.
TRUE
Contributes to conclusions that assist decision making by intended users of the assurance reports.
Relevance
Criteria are sufficiently complete when relevant facts that could affect the conclusions are not omitted.
Completeness
It allows reasonably consistent evaluation or measurement of the subject matter of the subject matter including, where relevant, presentation and disclosure, when used in similar circumstances by similarly qualified practitioner.
Reliability
Criteria contributions free from bias.
Neutrality
Criteria contributes to conclusions that are clear, comprehensive, and not subject to significantly different interpretations.
Understandability
A practitioner must have a questioning mind.
Professional Skepticism
