Summary of the audit Process PHASE I PHASE II Plan and design Perform analytical an audit approach procedures and tests of details of balances PHASE II PHASE IV Perform tests of Complete the controls and audit and substantive tests issue an audit of transactions report Arens, Loebbecke; Auditing, 8/ o2000 br Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Summary of the Audit Process PHASE I Plan and design an audit approach PHASE II Perform tests of controls and substantive tests of transactions PHASE III Perform analytical procedures and tests of details of balances PHASE IV Complete the audit and issue an audit report
ASSURANCE SERVICES Assurance services are professional services that improve the quality of information for OBJECTIVE decision makers Describe assurance services and distinguish audit services from Assurance services can be other assurance and nonassurance performed by CPAs or by services provided by CPAs. a variety of other professionals CPAs have provided many assurance services for years. particularly assurances about historical financial statement information Arens, Loebbecke; Auditing, 8/ o2000 br Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. ASSURANCE SERVICES Assurance services are professional services that improve the quality of information for decision makers. Assurance services can be performed by CPAs or by a variety of other professionals. CPAs have provided many assurance services for years, particularly assurances about historical financial statement information. OBJECTIVE Describe assurance services and distinguish audit services from other assurance and nonassurance services provided by CPAs
Audit Attestation and assurance Audit: Written report on whether f/s are in accordance with GaaP(Auditing Standards Attestation Written report on reliability of an assertion(e. g, Sales)(Attestation Standards Assurance Service to improve the quality of information Arens, Loebbecke; Auditing, 8/ o2000 br Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Audit, Attestation and Assurance Audit: Written report on whether F/S are in accordance with GAAP ( Auditing Standards) Attestation: Written report on reliability of an assertion (e.g., sales) (Attestation Standards) Assurance: Service to improve the quality of information
Attestation Services Example: Emmy Awards, Miss America Pageant, Lottery An attestation service is a type of assurance service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party Arens, Loebbecke; Auditing, 8/E o2000 br Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Attestation Services An attestation service is a type of assurance service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party. An attestation service is a type of assurance service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party. Example: Emmy Awards, Miss America Pageant, Lottery
Audit of historical financial statements Is a form of attestation service in which the auditor issues a written report expressing an opinion about whether the financial statements are in material conformity with generally accepted accounting principles Arens, Loebbecke; Auditing, 8/ o2000 br Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Audit of Historical Financial Statements Is a form of attestation service in which the auditor issues a written report expressing an opinion about whether the financialstatements are in material conformity with generally accepted accounting principles