Module A - Other Public Accounting Service Flashcards
assurance engagements are services that…
improve quality of information
attestation info is any info…
management is putting together
attestation engagements report on…
subject matter or assertion about subject matter
in attestation engagements, other party acknowledges responsibility for…
subject matter or assertion
examination is a…
high level of assertion
assertion based examination:
evaluate a written assertion
direct examination:
evaluate something other than written assertion
review is a ____ level of assertion
limited
for agreed-upon procedures, level of assurance depends upon…
procedures performed
three types of engagements
examination, review, agreed-up procedures
attestation standards are similar to…
fundamental auditing principles
4 attestation standards
practitioners knowledge about subject matter, suitable criteria, evaluation of internal control not required, restricted distributions
for attestation standards, what is not required?
evolution of internal control
for service organizations, who provides services related to controls to who?
service organization to user entity
service auditor provides SOC report on controls to who?
user entity auditor
service organizations are organizations that…
process transactions that are relevant to client’s internal control over financial reporting
user auditors may require…
assurance on internal controls implements at service organizations
for issuers, required report on…
operating effectiveness of internal control over financial reporting
for non issuers, requirements to…
- obtain understanding of design of internal controls
- requirement to determine operating effectiveness of internal controls (if chosen to rely on internal controls)
SOC type 1 includes
description of IC, design of IC
SOC type 2 includes
description of IC, design of IC, and operating effectiveness of IC
agreed upon procedures engagements typically would be contacted to…
do only one procedure
agreed upon procedures engagements scopes are usually…
less than an audits
in a agreed upon procedures engagements report, you…
- identify parties and describe specific procedures performed
- note an examination not performed and disclaim an opinion
- provide a summary of findings
- may limit use of report to specified parties
