7/24/2019 slide auditung chapter 25 arens
1/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 - 1
Other Assurance
er!ices
"ha#ter 25
7/24/2019 slide auditung chapter 25 arens
2/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 22
$earning Ob%ecti!e 1
&nderstand the le!el '( assurance
and e!idence re)uire*ents ('r
re!ie+ and c'*#ilati'n ser!ices
7/24/2019 slide auditung chapter 25 arens
3/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 -
.he standards ('r c'*#ilati'ns and
re!ie+s '( (inancial state*ents are
called Statements on Standardsfor Accounting and Review
Services (SSARS).
e!ie+ and "'*#ilati'n
er!ices
7/24/2019 slide auditung chapter 25 arens
4/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 -
elati'nshi# Bet+een E!idence
Accu*ulati'n and Assurance Attained
Level
of
Assurance
Attained
None
(Compilation)
Moderate(Review)
High(Audit)
Minimal(Compilation)
Significant(Review)
!tensive(Audit)
Amount of vidence Accumulated
7/24/2019 slide auditung chapter 25 arens
5/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 55
A re!ie+ ser!ice A re!ie+ engage*ent
is designed t' all'+ the acc'untant t' e3#ress
li*ited assurance that the (inancial state*entsare in acc'rdance +ith 4AAP
e!ie+ er!ices
7/24/2019 slide auditung chapter 25 arens
6/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 -
Pr'cedures uggested
('r e!ie+s
Obtain 6n'+ledge '( the acc'unting
#rinci#les '( the client7s industry
Obtain 6n'+ledge '( the client
a6ein)uiries '( *anage*ent
Per('r* analytical #r'cedures
Obtain letter '( re#resentati'n
7/24/2019 slide auditung chapter 25 arens
7/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 99
1 :isc'!er the c'*#any7s #r'cedures ('r
rec'rding, classi(ying, and su**ari;ing
transacti'ns and discl'sing in('r*ati'n
in the state*ents
2
7/24/2019 slide auditung chapter 25 arens
8/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 88
"'*#ilati'n er!ices
A c'*#ilati'n ser!ice engage*ent is de(ined in
A as 'ne in +hich acc'untants #resent
t' a client 'r third #arty, (inancial state*ents thatthe acc'untant has #re#ared
.he "PA (ir* d'es n't e3#ress any assurance
'n the state*ents
7/24/2019 slide auditung chapter 25 arens
9/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - ==
P'ssess 6n'+ledge ab'ut the acc'unting
#rinci#les and #ractices '( the client7s industry
>n'+ the client, including the nature '( itsbusiness transacti'ns, acc'unting rec'rds,
and c'ntent '( its (inancial state*ents
e)uire*ents ('r "'*#ilati'n
Establish an understanding +ith the client ab'ut
the nature and li*itati'ns '( the ser!ices t' be
#er('r*ed and a descri#ti'n '( the re#'rt
7/24/2019 slide auditung chapter 25 arens
10/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 1010
a6e in)uiries t' deter*ine +hether
the client7s in('r*ati'n is satis(act'ry
ead the c'*#iled (inancial state*entsand be alert ('r any 'b!i'us '*issi'ns
'r err'rs in arith*etic and 4AAP
e)uire*ents ('r "'*#ilati'n
7/24/2019 slide auditung chapter 25 arens
11/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 1111
1"'*#ilati'n +ith (ull discl'sure
2 "'*#ilati'n that '*its substantially all discl'sures
?'r* '( "'*#ilati'n e#'rt
"'*#ilati'n +ith'ut inde#endence
7/24/2019 slide auditung chapter 25 arens
12/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 1212
$earning Ob%ecti!e 2
:escribe s#ecial engage*ents
t' re!ie+ interi* (inancial
in('r*ati'n ('r #ublic
c'*#anies
7/24/2019 slide auditung chapter 25 arens
13/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 11
$i6e re!ie+s under A, apublic company
interim reviewincludes (i!e re)uire*ents ('r
re!ie+ ser!ice engage*ents
e!ie+ '(
7/24/2019 slide auditung chapter 25 arens
14/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 11
.he re!ie+ is c'nducted acc'rding t' the
standards '( the P"AOB and there is n'
re(erence t' the A in a re!ie+ re#'rt
e!ie+ '(
7/24/2019 slide auditung chapter 25 arens
15/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 1515
$earning Ob%ecti!e
:istinguish A
7/24/2019 slide auditung chapter 25 arens
16/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 11
Attestati'n standards
.y#es '( attestati'n engage*ents
$e!els '( ser!ice
Attestati'n Engage*ents
7/24/2019 slide auditung chapter 25 arens
17/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 1919
.y#es '( Engage*ents and
elated e#'rts
!amination
Review
Agreed"upon
procedures
!tensive
Significant
#ar$ing
High
Moderate
#ar$ing
%ositive
Negative
&indings
'eneral
'eneral
Limited
$pe ofngagement
Amount ofvidence
Level ofAssurance
&orm ofConclusion istri*ution
7/24/2019 slide auditung chapter 25 arens
18/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 1818
$earning Ob%ecti!e
&nderstand the nature '(
WebTrustassurance ser!ices
7/24/2019 slide auditung chapter 25 arens
19/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 1=1=
7/24/2019 slide auditung chapter 25 arens
20/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 2020
WebTruster!ices
.he WebTrustser!iceis a s#eci(ic ser!ice
de!el'#ed under the br'ader Trust Services
#rinci#les and criteria %'intly issued in 200by the A
7/24/2019 slide auditung chapter 25 arens
21/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 2121
?i!e TrustServicesPrinci#les
Securit$ he s$stem is protected against
unauthori+ed access
Availa*ilit$ he s$stem is availa*le for operation
and use as committed or agreed%rocessing
integrit$
S$stem processing is complete,
accurate, timel$, and authori+ed
-nline
privac$
%ersonal information o*tained as a result of
e"commerce is collected, used, disclosed,and retained as committed or agreed
Confidentialit$ nformation designated as confidential
is protected as committed or agreed
7/24/2019 slide auditung chapter 25 arens
22/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 2222
$earning Ob%ecti!e 5
&nderstand the nature '(
SysTrustassurance ser!ices
7/24/2019 slide auditung chapter 25 arens
23/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 22
7/24/2019 slide auditung chapter 25 arens
24/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 22
$earning Ob%ecti!e
:escribe s#ecial engage*ents
t' attest t' #r's#ecti!e (inancial
state*ents
7/24/2019 slide auditung chapter 25 arens
25/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 2525
Pr's#ecti!e ?inancial
tate*ents
?'recasts and #r'%ecti'ns
&se '( #r's#ecti!e (inancial state*ents
.y#es '( engage*ents
E3a*inati'n '( #r's#ecti!e (inancial state*ents
7/24/2019 slide auditung chapter 25 arens
26/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 22
$earning Ob%ecti!e 9
:escribe agreed-u#'n #r'cedures
engage*ents
7/24/2019 slide auditung chapter 25 arens
27/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 2929
.he audit is li*ited t' certain s#eci(ic
audit #r'cedures
Agreed-'n Pr'cedures
Engage*ents
.hese are re(erred t' as #r'cedures
and (indings engage*ents
.he As deal +ith (inancial state*entite*s, +hereas the AEs deal +ith
n'n(inancial state*ent *atters
7/24/2019 slide auditung chapter 25 arens
28/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 2828
$earning Ob%ecti!e 8
:escribe 'ther audit and li*ited
assurance engage*ents related
t' hist'rical (inancial state*ents
7/24/2019 slide auditung chapter 25 arens
29/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 2=2=
Other Audits 'r $i*ited
Assurance Engage*ents
Other c'*#rehensi!e basis '( acc'unting
#eci(ied ele*ents, acc'unts, 'r ite*s
:ebt c'*#liance letters and si*ilar re#'rts
7/24/2019 slide auditung chapter 25 arens
30/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 00
Other "'*#rehensi!e
Basis '( Acc'unting
"ash 'r *'di(ied cash basis
Basis used t' c'*#ly +ith the
re)uire*ents '( a regulat'ry agency
7/24/2019 slide auditung chapter 25 arens
31/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 11
Audit'rs are '(ten as6ed t' audit and issue
re#'rts in s#eci(ic as#ects '( (inancial
state*ents
#eci(ied Ele*ents,
Acc'unts, 'r
7/24/2019 slide auditung chapter 25 arens
32/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 - 22
1 ateriality is de(ined in ter*s '( the ele*ents,
acc'unts, 'r ite*s being audited rather than('r the '!erall state*ents
#eci(ied Ele*ents,
Acc'unts, 'r
7/24/2019 slide auditung chapter 25 arens
33/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 -
.he engage*ent and re#'rt sh'uld be
li*ited t' c'*#liance *atters the
audit'r is )uali(ied t' e!aluate
.he audit'r sh'uld #r'!ide a debt
c'*#liance letter 'nly ('r a client
('r +h'* the audit'r has d'ne anaudit '( the '!erall (inancial state*ents
:ebt "'*#liance $etters
and i*ilar e#'rts
7/24/2019 slide auditung chapter 25 arens
34/35
2008 Prentice Hall Business Publishing,2008 Prentice Hall Business Publishing,Auditing 12/e,Auditing 12/e,Arens/Beasley/ElderArens/Beasley/Elder 25 -25 -
.he audit'r7s '#ini'n is in the ('r* '( a
negative assurance, stating that n'thing
ca*e t' the audit'r7s attenti'n that +'uldlead the audit'r t' belie!e there +as
n'nc'*#liance
:ebt "'*#liance $etters
and i*ilar e#'rts
7/24/2019 slide auditung chapter 25 arens
35/35
2008 Prentice Hall Business Publishing2008 Prentice Hall Business Publishing Auditing 12/eAuditing 12/e Arens/Beasley/ElderArens/Beasley/Elder 25 - 5
End '( "ha#ter 25