assurance, attestation, and internal auditing services · assurance services assurance services are...
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Chapter 21
Assurance, Attestation, and Internal Auditing
Services
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
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Assurance Services
Assurance services
are independent
professional services
that improve the
quality of information,
or its context, for
decision makers.
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Assurance Services
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Types of Assurance Services
Risk
Assessment
Business
Performance
Measurement
Information
System
Reliability
Electronic
Commerce
Health Care
Performance
Measurement
PrimePlus
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Attest Engagements
Attest services occur when
a practitioner is engaged to
issue, or does issue, an
examination, a review, or an
agreed upon procedures
report on subject matter, or
an assertion about subject
matter, that is the
responsibility of another
party.
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Attest Engagements Figure 21-3
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Types of Attest Engagements
Attest
Engagements
Examination
Review
Agreed-
Upon
Procedures
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Attestation Standards
Attestation
Standards
General Fieldwork Reporting
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Reporting on an Entity’s Internal
Control over Financial Reporting The Federal Deposit Insurance Corporation
Improvement Act of 1991 requires that the
management of large financial institutions issue a
report on the effectiveness of the institution’s
internal control and that they engage accountants to
attest to management’s report.
The Sarbanes-Oxley
Act of 2002 imposed
similar requirements
on all publicly held
companies.
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Financial Forecasts
and Projections
CPAs can be engaged to examine, apply agreed-
upon procedures, or compile the prospective
financial statements if such statements are expected
to be used by a third party.
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Accounting and Review Services
Compilations Reviews
Many nonpublic companies do not choose to
contract for an audit of their financial statements.
However, these entities often employ a CPA to assist
with preparing their financial statements, tax
returns, or other financial documents.
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Internal Auditing
Internal auditing is an independent, objective assurance
and consulting activity designed to add value and
improve an organization’s operations.
It helps an organization accomplish its objectives by
bringing a systematic, disciplined approach to evaluate
and improve the effectiveness of risk management,
control, and governance processes.
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Internal Auditors’ Roles
Evaluating Risks and
Controls
Reviewing
Compliance
Financial Auditing Operational Auditing
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Trust Services
Security
Availability
Processing
Integrity
Online
Privacy
Confidentiality
Five Principles
of Trust
Services
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End of Chapter 21
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