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    Fundamentals of Assurance Services: By: Abigail Ibañez

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    Rhea Mae Amit
    The document discusses the fundamentals of assurance services including: 1) Assurance involves giving confidence in information used for decision making and refers to an auditor's satisfaction in a party's assertion for use by another party. 2) Assurance engagements have a three party relationship involving a practitioner, responsible party, and intended users and require appropriate subject matter, suitable criteria, sufficient evidence, and a written report. 3) Assurance conclusions can be reasonable or limited assurance and engagements have limitations. Auditing is evaluating evidence to ascertain correspondence with criteria and communicating results.

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    Fundamentals of Assurance Services: By: Abigail Ibañez

    Uploaded by

    Rhea Mae Amit
    23 views25 pages
    The document discusses the fundamentals of assurance services including: 1) Assurance involves giving confidence in information used for decision making and refers to an auditor's satisfaction in a party's assertion for use by another party. 2) Assurance engagements have a three party relationship involving a practitioner, responsible party, and intended users and require appropriate subject matter, suitable criteria, sufficient evidence, and a written report. 3) Assurance conclusions can be reasonable or limited assurance and engagements have limitations. Auditing is evaluating evidence to ascertain correspondence with criteria and communicating results.

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    The document discusses the fundamentals of assurance services including: 1) Assurance involves giving confidence in information used for decision making and refers to an auditor's satisfaction in a party's assertion for use by another party. 2) Assurance engagements have a three party relationship involving a practitioner, responsible party, and intended users and require appropriate subject matter, suitable criteria, sufficient evidence, and a written report. 3) Assurance conclusions can be reasonable or limited assurance and engagements have limitations. Auditing is evaluating evidence to ascertain correspondence with criteria and communicating results.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    23 views25 pages

    Fundamentals of Assurance Services: By: Abigail Ibañez

    Uploaded by

    Rhea Mae Amit
    The document discusses the fundamentals of assurance services including: 1) Assurance involves giving confidence in information used for decision making and refers to an auditor's satisfaction in a party's assertion for use by another party. 2) Assurance engagements have a three party relationship involving a practitioner, responsible party, and intended users and require appropriate subject matter, suitable criteria, sufficient evidence, and a written report. 3) Assurance conclusions can be reasonable or limited assurance and engagements have limitations. Auditing is evaluating evidence to ascertain correspondence with criteria and communicating results.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 25

    Fundamentals of Assurance

    Services
    By : Abigail Ibañez
    “The relevance and reliability of information is
    critical for making the best decision in a given
    situation.”

    DECISION
    • Assure means to give confidence or conviction
    • Assurance, in audit, refers to the auditor’s
    satisfaction as to the reliability of an assertion
    being made by one party for use by another
    party.
    Elements of Assurance Engagements(TASSA)

    • Three party relationship


    • Appropriate subject matter
    • Suitable criteria
    • Sufficient appropriate evidence
    • Assurance report that is written
    Three Party Relationship
    • Practitioner – broader than the term
    “auditor” can be from other fields of study.
    – Can use the works of persons from other
    disciplines more commonly known as “experts”
    Responsible Party – responsible for the
    subject matter or subject matter
    information.
    Three Party Relationship
    • Intended users – these are the persons to
    whom the practitioner prepares the assurance
    report.

    • Note: The responsible party can be one of the


    intended users
    Fundamentals of Assurance Services

    • Forms of conclusion
    – Reasonable Assurance
    • In our opinion internal control is effective, in all
    material respect based on XYZ criteria
    – Limited Assurance
    • Based on our work described in this report, nothing has
    come to our attention that causes us to believe that
    internal control is not effective, , in all material respect
    based on XYZ criteria
    Fundamentals of Assurance Services

    • Types of Assurance Engagement


    • Limitations of Assurance Engagement
    • Non Assurance Services
    Auditing Defined
    • Auditing is a systematic process of objectively
    obtaining and evaluating evidence regarding
    assertions about economic actions and events
    to ascertain the degree of correspondence
    between these assertions and established
    criteria and communicating the results to
    interested users
    Audits of Historical Financial Information

    • Types of Audit
    • Information Risk
    – Definition
    – Why does it exist?
    – How to reduce?
    The Professional Practice of Accounting

    • Accounting as a profession
    • 4 Sectors
    • Regulations
    • Government Agencies
    • BoA
    – Composition
    – Nomination and Appointment
    – Qualification (5)
    The Professional Practice of Accounting
    – Term
    – Powers and Functions
    – Grounds for Removal (4)
    – Council
    • CoA
    – Composition
    – Term
    The Professional Practice of Accounting

    • Standard Setting Bodies


    – Transition
    – Composition
    – Term
    – Nomination and Appointment
    • Professional Organization
    – Sectoral Organizations
    The Professional Practice of Accounting

    • Requirements for a CPA Certificate


    – ETC
    • Composition
    • Duties and Function
    • Term
    – CPA Board Exam
    • Ratings
    • Refusal to issue
    • Penalties and Sanctions
    The Professional Practice of Accounting
    • Foreign CPAs
    • Professional Standards
    – Purpose
    – Standards and Practice Statements
    • CPE – “ refers to the inculcation , assimilation and
    acquisition of knowledge, skills, proficiency and
    ethical and moral values, after the initial
    registration of a professional that raise and enhance
    the professional’s technical skills and competence.”
    The Professional Practice of Accounting
    – Programs
    – Credit Units
    – Exemption
    – Sanction
    Setting Up and Maintaining an Accounting
    Practice
    • Forms that can practice Public Accountancy
    • Well known CPA firms in the Phils
    • Accreditation to practice public accountancy
    – Certificate of Accreditation
    – 3 years meaningful experience
    – Renewal of Accreditation
    – Names and Foreign CPAs
    – QRC
    Setting Up and Maintaining an Accounting
    Practice
    • Fees and Billing
    • Death, Disability and Dissolution
    • Highlights of different Sections in RA9298
    FS Audit Process
    • Definition of Auditing
    • Complete Set of FS
    • Objective of an audit and an auditor
    • Responsibilities of Mgmt (5)
    • Basic Concepts
    • FS Audit Process
    Pre Engagement
    • Contents of Engagement Letter
    • When to send a separate engagement letter
    (audit of a component)
    • When to send a new engagement letter to a
    recurring client
    • Change in terms of Engagement
    Audit Planning
    1. Obtaining an understanding of the client and its
    environment
    2. Determining the need for experts
    3. Establishing materiality and assessing risk
    4. Assessing the possibility of non compliance
    5. Identifying related parties
    6. Performing preliminary analytical procedure
    7. Development of overall audit strategy and detailed
    audit plan; preparation of preliminary audit program
    Study and Evaluation of Internal Control

    • Obtain and document understanding of


    internal control
    • Make a preliminary assessment of control risk
    • Determine the auditor’s response to risk
    assessment
    • Reassess control risk
    • Determine the nature, timing and extent of
    audit procedure
    Substantive Testing
    • Description of Substantive Test
    • Reporting of Audit Findings
    • Resolution of Audit Differences
    Completing the audit
    • Final materiality judgments
    • Summarizes and evaluates audit findings
    • Reviews working papers
    • Reviews financial statement presentation and
    disclosure
    • Considers subsequent events
    Post Audit Responsibilities
    • Considering events during the audit
    • Analyzing the activities within the audit
    • Producing recommnedations

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