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Identify the four (4) types of services that are normally performed in connection with the entity's financial statements.
Audit, review, compilation, agreed-upon opinion
Conducted primarily to enable the auditor to express an opinion on the entity's financial statements.
Audit of financial statements
Performed to obtain limited assurance on the financial statements
Review
The usual procedures in a review engagement are
Inquiry and analytical procedures
Assurance procedures are done with the objective to draw conclusion from the evidence obtained as the basis for the expression of an appropriate conclusion.
Review
Practitioners assist the clients in the preparation and presentation of their financial statements.
Compilation
The reporting responsibility of a CPA in a compilation engagement is to
Clearly indicate in the report that no assurance is provided
Agreed upon procedures engagements may be accepted provided that the client takes full responsibility for the adequacy of the procedures to be performed and
the distribution of the report is limited to the parties who agreed about the procedures performed
Give 3 procedures usually performed in an AUP engagement
Inquiry and analysis; recomputation, comparison and other accuracy checks; observation; inspection; obtaining confirmations
The standards used in an audit engagement
Philippine Standards in Auditing
The standards used in a review engagement
Philippine Standards on Review Engagements
The standards used in AUP engagements
Philippine Standard on Related Services
The standards used in a compilation engagement
Philippine Standard on Related Services
Identify 3 of the elements in an assurance engagement
Three-party relationship; appropriate subject matter; suitable criteria; sufficient appropriate evidence; written assurance report
The evaluation or measurement of the subject matter is performed by the responsible party and the outcome of such evaluation or measurement is the form of an assertion by the responsible party that is made available to the intended users.
Assertions-based engagements
A prospective financial information prepared on the basis of hypothetical assumptions
Projections
