Modern Auditing:

Assurance Services and the Integrity

of Financial Reporting, 8
th
Edition
William C. Boynton
California Polytechnic State
University at San Luis Obispo
Raymond N. Johnson
Portland State University
Chapter 20 Attest and Assurance Services, and Related
Reports
Chapter Overview
Universe of Assurance Services
Levels of Assurance
Audit or Examination-level Assurance

Review-level Assurance
Negative Assurance

Agreed-upon Procedures

No Assurance
Accounting and Compilation Services
Assurance/Service Matrix
Types of Engagements
Statements on Auditing Standards (SAS)


Statements on Standards for Attestation
Engagements (SSAE)


Statements on Standards for Accounting
and Review Services (SSARS)
Other SAS Engagements Special
Reports
Other Comprehensive Bases of
Accounting


Specified Elements, Accounts, or Items
of a Financial Statement


Compliance Reports Related to Audited
Financial Statements
Study Break
1. This level of assurance intends to
give the positive expression of
opinion by the CPA regarding an
assertion by management.
A. Audit-level assurance
B. Review-level assurance
C. Agreed-upon procedures
D. No assurance

A. Audit-level assurance
Study Break
2. This defines the services
associated with the review or the
compilation of financial
statements of a nonpublic entity.
A. SAS
B. SSAE
C. SSARS
D. GAAS

C. SSARS
Accepting and Performing Attest
Engagements
Attest Engagement
Gathers evidence
Objectively assesses the measurements and
communication
Reports the findings

Attestation Standards
SSAE 1 (Figure 20-7)
General Standards
Standards of Fieldwork
Standards of Reporting
Engagements Performed Under
Attestation Standards
SSAE 101 Engagements
CPA WebTrust
Business and information privacy practices
Transaction integrity
Information protection

CPA SysTrust
Availability
Security
Integrity
Maintainability
Engagements Performed Under
Attestation Standards
Agreed-upon Procedure Engagements
Report of Procedures and Findings

Reporting on Prospective Financial
Information
Types of Prospective Financial Information
Financial Forecast
Financial Projection
Types of Services
Compilation
Examination
Application of Agreed-upon Proceures
Engagements Performed Under
Attestation Standards
Compliance Attestation
Examination Engagements
Nature of Compliance Requirements
Nature and Frequency of Noncompliance
Qualitative Considerations

Agreed-upon Procedure Engagements
Compliance with Specified Requirements
Effectiveness of Entitys Internal Control
Both of the Above
Accounting and Review Services
Nonpublic Companies
Review of Financial Statements
Review Engagement


Compilation of Financial Statements
Compilation Engagement
Other Assurance Opportunities
CPA Risk Advisory
Business Risk Management
Identification and assessment of primary
potential risks

Independent assessment of identified risks

Evaluate system of identification and
limitation of risks
Other Assurance Opportunities
CPA Performance View
Performance Measurement
Assess whether systems a properly
measuring activities

Evaluate employees

Measure actual performance against
objectives

Identify areas providing best opportunities
for improvement
Other Assurance Opportunities
CPA Eldercare
Attestation Engagements


Direct Services


Consulting Services
Study Break
3. All of the following are risks
associated with doing business
electronically, except:
A. Business and information privacy
practices
B. Transaction integrity
C. Information protection
D. All of the above

D. All of the above
Study Break
4. Of the four SysTrust Principles, this
one describes the system being
protected against unauthorized
physical and logical access.
A. Availability
B. Security
C. Integrity
D. Maintainability

B. Security
Study Break
5. This type of prospective financial
information presents, to the best of the
responsible partys knowledge and
belief, an entitys expected financial
position, results of operations, and
cash flows.
A. Budget
B. Financial forecast
C. Financial projection
D. All of the above

B. Financial forecast
Study Break
6. This is the AICPAs branded
version of performance measure.
A. CPA Compilations
B. CPA Risk Advisory
C. CPA Performance View
D. CPA Eldercare

C. CPA Performance View