PT CHAPTERS 24-25 OTHER ASSURANCE AND NONASSURANCE SERVICES Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. (CHAPTERS 24 - 25) OTHER ASSURANCE AND NONASSURANCE SERVICES
OTHER AUDIT ATTESTATION SERVICES AND COMIPILATION ENGAGEMENTS SKEPTICISM APPLIES TO ALL TYPES OF ENGAGEMENTS Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 24 OTHER AUDIT ATTESTATION SERVICES, AND COMPILATION ENGAGEMENTS SKEPTICISM APPLIES TO ALL TYPES OF ENGAGEMENTS
Review services Procedures Suggested for reviews d Obtain knowledge of the accounting principles of the client's industry d Obtain knowledge of the client. d Make inquiries of management. 1. Inquire as the companys procedures for recording, classifving, and summarizing transactions and disclosing information in the statements 2. Inquire into actions taken at meetings of stockholders and board of directors 3. Inquire of persons having responsibility for financial and accounting matters. Arens, Loebbecke: Auditing, 8/E @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. ¶ Obtain knowledge of the accounting principles of the client’s industry. ¶ Obtain knowledge of the client. ¶ Make inquiries of management. 1. Inquire as the company’s procedures for recording, classifying, and summarizing transactions, and disclosing information in the statements. 2. Inquire into actions taken at meetings of stockholders and board of directors. 3. Inquire of persons having responsibility for financial and accounting matters. Review Services Procedures Suggested for Reviews
Procedures suggested for Reviews(continued) Relationship between Evidence Accumulation Perform analytical procedures and Assurance d Obtain letter of representation Attained High (Audit) Level Moderate Assurance (Review) Attained None ( Compilation) Minimal Significant Extensive Compilation) (Review) (Audit) Amount of Evidence accumulated
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Procedures Suggested for Reviews (continued) ¶ Perform analytical procedures ¶ Obtain letter of representation Relationship between Evidence Accumulation and Assurance Attained
Form of report 1. The first paragraph is similar to an audit report except for its reference to a review service rather than an audit 2. The second paragraph notes that a review consists primarily of inquiries and analytical procedures. 3. The third paragraph expresses limited assurance in the form of a negative assurance that "we are not aware of any material modifications that should be made to the financial s Arens, Loebbecke: Auditing, 8/E statements @2000 Prentice hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Form of Report 1. The first paragraph is similar to an audit report except for its reference to a review service rather than an audit. 2. The second paragraph notes that a review consists primarily of inquiries and analytical procedures. 3. The third paragraph expresses limited assurance in the form of a negative assurance that “we are not aware of any material modifications that should be made to the financial s statements