...Auditing, Attestation, and Assurance Services ACC491 Auditing, Attestation, and Assurance Services This paper discusses and analyzes three different services provided by Certified Public Accountants (CPAs), namely: auditing, attestation, and assurance services. Surprisingly, assurance service is the broadest term among three. It includes auditing and attestation services. The most commonly heard service, auditing, is the narrowest service that a CPA firm provides. The attestation service lies in between auditing and assurance. Each of these services is valuable to the public and the clients requesting these services. For each service, the team will first give a definition, and provide an example of each service. Team C also discusses who would use these types of services as well as the reason behind doing so. Finally, the team will provide some research about what standards apply to each service and what organization establishes them. Auditing Auditing is “a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users” (Boynton & Johnson, 2006, p. 6). An example of auditing is auditing a company’s financial statements. “ A financial statement audit involves obtaining and evaluating evidence about an entity’s presentation of its financial position, results of operations...
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...Team, Auditing, Attestation, and Assura Purchase here http://chosecourses.com/acc-491-week-2-learning-team-auditing-attestation-and-assura Description ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assurance Services Paper 1 ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assura Purchase here http://chosecourses.com/acc-491-week-2-learning-team-auditing-attestation-and-assura Description ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assurance Services Paper 1 ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assura Purchase here http://chosecourses.com/acc-491-week-2-learning-team-auditing-attestation-and-assura Description ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assurance Services Paper 1 ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assura Purchase here http://chosecourses.com/acc-491-week-2-learning-team-auditing-attestation-and-assura Description ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assurance Services Paper 1 ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assura Purchase here http://chosecourses.com/acc-491-week-2-learning-team-auditing-attestation-and-assura Description ACC 491 Week 2, Learning Team, Auditing, Attestation, and Assurance Services Paper 1 ACC 491 Week 2, Learning Team, Auditing, Attestation, and...
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...Auditing, Attestation, and Assurance Services Thing 1, Thing 2, Thing 3 ACC/491 February 25, 2013 Professor Thing Auditing, Attestation, and Assurance Services In the early part of the 1960s, research scientists, as part of the Advanced Research Projects Agency, generated the concept that it was possible to create a globally interconnected collection of computers. Through this experiment, it was envisioned that everyone who could would be able to access data and programs quickly from any site (Elon University, 2013). Flashing forward to the world of today only five decades later, today’s world lives the benefits of these early visionaries. The database available for use by decision makers gives easy access to vast amounts of raw or filtered information. Access doors are computers, once filling a warehouse facility to do simple calculations, today available with unlimited information in a device smaller than an average hand. Amidst this quickly expanding information, available through the Internet and through other sources, the need is substantial for the reliability, the credibility, timeliness, and the relevance of the data. The better the quality of the information, the better off management, investors, and the agencies that regulate them are to make more informed decisions. The roles played by auditing, attestation, and assurance services help bridge the credibility and timeliness...
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...Payal Mehta ACC416 October 1, 2013 Auditing Research Paper The profession of auditing plays a very important role in our economy especially after Congress passed the Sarbanes-Oxley Act its role in the economy was greatly solidified. Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent person. “The auditing profession offers a wide range of employment opportunities for new accountants. Most accounting firms offer client services in three areas: auditing, tax, and consulting. A new accountant might be hired to work in any of these areas. In the audit area, the accountant may work for a variety of clients including private or public companies, clients in banking, insurance, manufacturing, technology, retail, health care, or government. Individuals working in the audit area may also spend most of their time providing internal audit services to clients rather than working as an external auditor. Working in any of the areas in an accounting firm may be one of the most demanding jobs, but it is also one of the most interesting, exciting experiences and a great way to prepare to work in the corporate business world.” “What is Auditing?” Web. 29 September 2013 Accounting is the recording, classifying, and summarizing of economic events in a logical manner...
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...Audit, Attestation, and Assurance Services ACC491 Kimberly Johnson December 14, 2015 Audits, assurance services, and attest services are all work that could be performed by an auditor. Each category offers a range of services that could be beneficial to many companies, and all help in regulating a company’s financial documents. Audit Services There are 3 different types of audits, financial statement audit, compliance audit, and operational audit. A financial statement audit involves obtaining and evaluating evidence about a company’s presentation of their financial position, operation results, and cash flows. This audit is to ensure that the company is following all GAAP guidelines of reporting. In most states a CPA must complete these types of audits, and generally companies will hire an external auditor to perform this type of audit as the data is distributed to stockholders, creditors, regulatory agencies, and the general public. Compliance audits also involve obtaining and evaluating evidence to determine if financial or operating activities conform to specified conditions, rules, or regulations. Operational audits are to determine the efficiency and effectiveness of a company’s operating activities in relation to specified objectives. This type of audit is referred to as a performance audit or a management audit. Assurance Services Assurance services are a broader term that includes audits and other assurances about representation of management. Assurance services...
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...491 Contemporary Auditing 1, Complete Course + Final Exam Purchase here http://chosecourses.com/acc-491-contemporary-auditing-1-complete-course-final-exam Product Description WEEK 1 Individual Assignment, Generally Accepted Auditing Standards Discussion Questions 1, 2 and 3 Weekly Summary WEEK 2 Individual Assignment from Text, Questions 1-23 Learning Team, Auditing, Attestation, and Assurance Services Paper 1 Learning Team, Auditing, Attestation, and Assurance Services Paper 2 Discussion Questions 1, 2 and 3 WEEK 3 Individual Assignment from Text, 5-29, 5-30, 6-20, 6-21, 6-22, 7-22 Learning Team Assignment, Assessing Materiality and Risk Simulation Paper Learning Team Assignment, Assessing Materiality and Risk Assessment Presentation Learning Team Assignments from Text, Exercises 6-26, 7-25 Discussion Questions 1, 2 and 3 WEEK 4 Individual Assignment from Text, 8-15, 8-16, 10-31, 10-32 Learning Team Assignment - Apollo Shoes Case Assignment Discussion Questions 1, 2 and 3 WEEK 5 Individual Assignment from Text, 11-6, 11-8, 11-9, 13-8 Learning Team Assignment - Audit Sampling Case Memo Weekly Summary Final Examination ACC 491 Contemporary Auditing 1, Complete Course + Final Exam Purchase here http://chosecourses.com/acc-491-contemporary-auditing-1-complete-course-final-exam Product Description WEEK 1 Individual Assignment, Generally Accepted Auditing Standards Discussion...
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...Audit and Assurance Services Chapter 1 1 Learning Objectives 1. What is auditing? Distinguish between auditing and accounting. Importance of auditing in reducing information risk. 2. Distinguish audit services from other assurance and non-assurance services provided by CPAs. 3. Three main types of audits. 4. How to become a CPA? Identify the primary types of auditors. 2 What is auditing? Evaluating 3 Nature of Auditing Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent person. 4 Audit Reporting -- (Expressing Opinions) The final stage in the auditing process is preparing the Audit Report, which is the communication of the auditor’s findings to users. 5 Information and Established Criteria To do an audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information. 6 Accumulating Evidence and Evaluating Evidence Evidence is any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria. Transaction data Client inquiry Written and electronic Communications with outsiders Observations 7 Competent, Independent Person The auditor must be qualified...
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...CHAPTER 1 Auditing and Assurance Services LEARNING OBJECTIVES | | |Exercises and | | | |Problems | | |Review Checkpoints | | | | | | |Define information risk and explain how auditing and assurance services play|1, 2, 3 |48, 50 | |a role in reducing this business risk. | | | | | | | |Define and contrast accounting, auditing, and assurance services. |4, 5, 6, 7, 8 |47 | | | | | |Describe and define the management assertions embodied in financial |9, 10, 11 |52, 54 | |statements, and why auditors use them as a focal point of the audit. ...
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...company, Apollo Shoes, is considering utilizing my firm, AOW, for auditing and assurance services. I want to personally thank you for the consideration. There are a few services I can offer your company that would be very beneficial to you. These services including auditing your financial statements, attestation services, controls over and risks related to investments, and fraud and illegal acts risk assessment. Auditing Service When it comes to auditing, we are here to audit your financial statements. According to Arens, Elder, and Beasley (2012), auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria (Chapter 1). Our goal is to independently verify the financial statements produced by your company. My team will test revenue, expenses, purchasing, and many other items during our financial statement audit. This should give you the confidence in the information your company is putting out. Assurance Service In addition to the auditing service that AOW will provide to Apollo, we are also prepared to offer assurance services such as attestation services, controls over and risks related to investments, and fraud and illegal acts risk assessment. Attestation services include audit of internal control over financial reporting, reviews of historical financial statements, and attestation services on information technology. According to Arens, Elder,...
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...Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Larry Lancaster, The purpose of this letter is to introduce our firm, Auditing and Assurance Services, LLC., and explain the auditing and assurance services our firm provides to our clients and their benefits. We make sure our clients are comfortable while we perform an effective and thorough audit on behalf of the firm. In addition to the information on the services we provide, I want to explain my role in providing the assurance services available, and provide a description of the requirements for meeting the standards for the services offered. Auditing and Assurance Services Auditing is defined as an unbiased accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria (Arens, 2012). Auditors ensure the fiscal accuracy and responsibility of organizations. Our firm offers three primary types of audit services: operational audits, compliance audits, and financial statement audits (Arens, Elder, & Beasley, 2012). During an operational audit, we provide evaluations on the efficiency and effectiveness of particular pieces of operating procedures and methods we are auditing (Arens, 2012). In operational auditing, the reviews are not limited to accounting and can include the evaluation of organizational structure, computer operations, production methods, marketing, and any other area in which the auditor is qualified...
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...AUDIT 401-01 Chapter 1: Auditing and Assurance Services User Demand for Reliable Information A. Information and Information Risk * ****Business risk: the risk that an entity will fail to meet its objectives**** * Environmental conditions to increase user demand for relevant, reliable, information: 1. Complexity 2. Remoteness 3. Time sensitivity 4. Consequences * Information risk: the probability that the information circulated by a company will be false or misleading * ****Assurance: Depend on information professionals to serve as an independent and objective intermediaries who will lend credibility to the information**** * ****Attestations: when the assurance is provided for specific assertions made by management**** Auditing, Attestation, and Assurance Services A. Definition of Financial Statement Auditing * ****Auditing: systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the results to interested users **** OVERVIEW: Independent auditor – obtains and evaluates evidence knowledge of client’s business, observation of physical assets, inquiry of managers, confirmations from third parties, inspection of documents Management assertions about economic actions and events: * Balance sheet * Income statement * Statement...
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...be sent to AOW shortly after the end of December. The AOW staff assigned to the audit will work closely with Katrina Ramirez, the Internal Auditor for Apollo Shoes. This brief contains additional information regarding the auditing and assurance services offered by AOW that Apollo Shoes may find beneficial now or in the future, an explanation of the role AOW will take on in the aforementioned engagement, and a description of the requirements on AOW to meet the standards for these offered services. Auditing and Assurance Services The management of Apollo Shoes can expect the highest level of service from AOW. AOW offers a variety of assurance and audit services, as well as a variety of accounting services, to meet the financial and accounting needs of its clients. One type of assurance service the company is able to provide is an attestation service “in which the CPA firm issues a report about the reliability of an assertion that is made by another party” (Arens, Elder, & Beasley, 2012, p. 9). These assurance services fall into five categories: “audit of historical financial statements”, “audit of internal control over financial reporting”, “review of historical financial statements”, “attestation services on information technology”, and “other attestation services that may be applied to a broad range of subject matter” (Arens, et al, 2012, p. 9). An “audit of historical financial statements”...
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...Auditing Theory -Auditing and Assurance Services- An integrated approach Chapter 1 The assurance service market Objective 1-1 describe auditing: Auditing: accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent person. Evidence: any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria. To satisfy the purpose of the audit, auditors must obtain a sufficient quality and volume of evidence. Forms of evidence: - Transaction data - Client testimony - Written and electronic communications with outsiders - observations To do an audit there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate information. The auditor must be qualified to understand the criteria used and must be competent to know the type and amount of evidence to accumulate in order to reach the proper conclusion after examining the evidence. The auditor must also have an independent mental attitude. The final stage in the auditing process is preparing the audit report which communicates the auditor’s findings to the users. It must inform the readers of the degree of correspondence between information audited and the established criteria. Objective 1-2 distinguish between auditing and accounting Accounting: recording...
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...123 Market Street Phoenix, Arizona 44444 Dear Mr. Charles, AUDITING INTRODUCTION LETTER I am writing this letter to introduce myself, my company, and the auditing and assurance services we can offer to Apollo Shoes. I will also discuss the benefits of our services as well as the role we will provide and the requirements for meeting the standards for the services we offer. Our firm has been in business for over 15 years and has the necessary expertise to provide your company with the related services. Auditing and Assurance Services Available According to Arens, Elder, and Beasley “auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria.” Also, an assurance service is an independent professional service that promotes the quality of information. These services are regarded as valuable because they come from an independent and unbiased professional. Although there are so many auditing and assurance services our firm provide, I would explain a few and the popular once we have. First we do have the audit of historical financial statements. With this type of service, the auditor will assert that the statements are fairly stated according to an applicable standard, for instance, the International Accounting Standard or the U.S. Standards. Such an audit is an attestation service where our auditor issues a written report expressing an opinion...
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...Auditing Introduction Letter Lissete Castrillon ACC/546 February 3, 2014 Allan Foster Auditing Introduction Letter Larry Lancaster Apollo Shoes Chairman, President & CEO February 3, 2014 Shoetown, Maine Dear Mr. Lancaster Through the following letter I would like to thank you for trusting our firm AOW in planning your upcoming audit. You are already familiar with the process and what we review during this procedure, like auditing financial statements which include income statements, balance sheets, statements of cash flows and retained earnings. But before we go into these, I would like to give you some information of what our firm has to offer. Some of the services that we provide in our firm are a variety of audits threaded to the need of each company. Operational audits will study specific areas of a company with the sole purpose of measuring its performance; this can be measured by relying on the effectiveness and efficiency of a determined area, for example the sales department. This type of audit will benefit the profitability of a company because it can find the weakest and strongest link of each area. Financial audits which is what we will be doing for Apollo Shoes, entails the auditing of financial statements, the purpose of this type of audit is to ensure that the company is preparing financial statement according to GAAP regulation. It is very important to be compliant with these principals because the information that is given is what investors...
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