Related services to auditing, Auditing

Related Services to Auditing

Additionally, audit services, auditors offer other services. These can be categorized as:

Assurance engagements:
•    Audits
•    Reviews

Non-assurance Engagements:
•    Agreed upon Procedures
•    Compilations

Reviews:
The purpose of review of financial statements is to allow an auditor to state whether, on the basis of process which do not give all the evidence which would be needed in an audit, anything has come to the auditor’s attention which causes the auditor to consider that the financial statements are not ready, in all material respects, in accordance with a recognized financial reporting framework. The similar objective exerts to the review of financial or other information organized in accordance with suitable criteria.

The review includes query and analytical process that are designed to review the consistency of an assertion which is the responsibility of one party for use by the other. Whereas a review includes the application of audit skills and methods and the gathering of evidence, it does not ordinarily involve an assessment of accounting and internal control systems, tests of records and of responses to queries by acquiring corroborating evidence via observation, inspection, confirmation and computation, that are process ordinarily performed throughout an audit.

However the auditor tries to become aware of all important matters, the process of a review make the attainment of this objective less possible than in an audit engagement, therefore the level of assurance given in a review report is respectively less than that specified in an audit report.

Agreed-upon Procedures:
In an engagement to execute agreed-upon process, an auditor is engaged to take out that process of an audit nature to which the auditor and the entity and any suitable third party agreed and to report on realistic findings. The receiver of the report must form their own conclusions from the report by the auditor. The report is limited to those parties that have agreed to the procedures to be performed as others, naive of the causes for the process, might misinterpret the outcomes.

Compilations:
In a compilation engagement, the accountant is busy to employ accounting proficiency as opposed to auditing expertise to gather, categorize and summarize financial information. This ordinarily entails decreasing detailed data to a convenient and understandable form without need to test the assertions underlying that information. The process used are not designed and do not allow the accountant to state any assurance on the financial information. Though, users of the compiled financial information derive some advantage as an outcome of the accountant’s involvement since the service has been performed with due professional talent and care.

Posted Date: 12/3/2012 4:27:46 AM | Location : United States







Related Discussions:- Related services to auditing, Assignment Help, Ask Question on Related services to auditing, Get Answer, Expert's Help, Related services to auditing Discussions

Write discussion on Related services to auditing
Your posts are moderated
Related Questions
Question 1: What do you meant by Proactive Project Management? Define Proactive Project Management Bring out significance of Proactive Project Management with an exa


(a) Define each of the following four concepts. -Master Data Management -Data Quality -Data Governance -Cloud Computing Explain how they relate to the various Busine

Kevin Black, the sole owner of a small bakery, has been told that the business should have financial statements reported on by an independent auditor. Kevin Black, having some b

Examination of Deeds Make Sure that the mortgage is in the name shown in the advance records; That there is a document of title to the property within mortgage and that


Fleet Bhd operates a chain of high street retail outlets selling clothing and household items. In 1995, this company was heading for a financial loss and was deemed to have lost st

Experts as a source of Audit Evidence Mostly the auditor's work on evidence obtained from along within the entity supported through confirmations from third parties will provi

Transferee Liability - A person may be held LIABLE for another taxpayer's delinquent taxes if: 1. The transferee received assets of the transferor-taxpayer; and 2. The transf

Problem: (a) Your client has sought your advise on the procedures to be adopted for carrying out the stocktaking which is based on a year-end count. You are required to prepa