Give 3 procedures usually performed in an AUP engagement
Inquiry and analysis; recomputation, comparison and other accuracy checks; observation; inspection; obtaining confirmations
Required knowledge of entity in a review engagement
Sufficient to identify areas in the FS where material misstatements are likely to occur
The usual procedures in a review engagement are
Inquiry and analytical procedures
Required knowledge of entity in a compilation engagement
Sufficient to compile the FS
The reporting responsibility of a CPA in a compilation engagement is to
Clearly indicate in the report that no assurance is provided
The standards used in a review engagement
Philippine Standards on Review Engagements
The standards used in an audit engagement
Philippine Standards in Auditing
Identify 3 examples of subject matters in assurance engagements
Data; systems and processes; behavior; physical characteristics
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
Refers to the quality of evidence
Appropriateness
Conducted primarily to enable the auditor to express an opinion on the entity's financial statements.
Audit of financial statements
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
Name the three parties in an assurance engagement
Professional accountant; Responsible party; Intended users
Required knowledge of entity in an AUP engagement
Sufficient to apply the agreed upon procedures
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
The standards used in a compilation engagement
Philippine Standard on Related Services
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
Performed to obtain limited assurance on the financial statements
Review
Standards or benchmarks used to evaluate or measure the subject matter of an assurance engagement.
Criteria
Practitioners assist the clients in the preparation and presentation of their financial statements.
Compilation
Identify 3 of the elements in an assurance engagement