Deming, Malone, Livesay,

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Assurance Services Update July 1999
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Assurance Services

• Defined by the Special Committee on Assurance
  Services as
• Independent professional services that improve
  the quality of information, or its context, for
  decision makers

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Definition of Assurance services is necessarily
broad
Assurance
Relevance service
Attestation
Systems assurance
Audit
Review
Navigation service
Agreed-upon procedures
Context service
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Five Service Opportunities currently under
development

• Electronic Commerce (CPA WebTrustä)
• CPA ElderCare Services
• CPA Performance Viewä (Business Performance
  Measures)
• CPA SysTrust Servicesä (Systems Reliability)
• Risk Services

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WebTrust at a Glance

• Comprehensive Business Disclosures
• Security Testing
• Privacy Testing
• Transaction Fulfillment Testing
• New Consumer Recourse Provision
• International Presence
• Quality Control Reviews of CPA Firms
• Fraud Deterrent

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Benefits of CPA WebTrust

• Improved business disclosure and practices
• Better transaction processing and security
• Enhanced trust and confidence on the net
• More customers, lower cost for business
• Greater competition, greater array of choices
  for the customer
• Helps level the playing field
• More and better business for all

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WebTrust Initiatives

• Awareness building
• New Version 2.0 B-to-B Model
• WebTrust - ISP exposure draft available
• New WebTrust training practice aids
• Increased communications to licensees
• International licensing very successful
• Competency model

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WebTrust Awareness Building

• Current focus on policy-making arena because of
  consumer trickle-down effect
• One on one meetings held (or scheduled) w/ DOC,
  FTC, EC, White House, FDIC, SEC, US Congress,
  IBM, AOL many others
• Recent buy-in of WebTrust by On-Line Privacy
  Alliance
• New Marketing plan under development

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CPA ElderCare Services

• Designed to provide comfort to family members
  that care goals are achieved for elderly family
  members no longer able to be totally independent
  through
• Consulting Services
• Direct Services
• Assurance Services

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ElderCare Training Initiatives

• Five Training Courses completed in self and group
  study format
• Assurance Services ElderCare (intro)
• ElderCare Practice Mgmt. Development
• Medical Psychosocial Issues
• Financial Issues of Aging
• Legal Issues of Aging
• NAC approved accreditation expected

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Other ElderCare Initiatives

• Practice Aids under development
• Practitioners Resource Guide very popular
• Marketing Tool Kit now available
• Formal Launch September 1999 through rollout of
  group study and marketing campaign
• Competency model under development
• Practitioners database to promote service

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Business Performance Measures

• A Process that assists organizations in
• Developing short- and long-term strategies
• Translating the strategies into a simple, focused
  set of measures
• Monitoring measures over time
  to assess progress
  toward strategic goals.

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Business Performance Measures

• Designed for middle market organizations
• Aligns and links an organizations mission,
  vision, strategies to its daily actions and
  operations.
• Increases individual and group accountability.
• Fosters a team environment.

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BPM Initiatives

• 3 day training course under development
• Process Guide with Practice Aids
• Reporting software (PB Views)
• Marketing Research very positive
• Competency Model under development
• September 1999 Launch Date

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CPA SysTrust Services

• What is it?
• SysTrust is an attestation level service that
  results in a report to management or a third
  party on managements assertion that a system
  is reliable

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SysTrust key definitions developed

• A System is defined as
• an organized collection of software, data,
  processes, human resources and infrastructure
  that, together within a business context,
  produces information
• Reliable is measured by Principles Criteria of
  availability, security, integrity
  maintainability

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CPA SysTrust Services Initiatives

• SysTrust Principles Criteria exposure draft now
  available at www.aicpa.org
• Possible alliances with ISACA
• 2 AICPA training courses under development
• Competency Model
• Rollout expected late 1999 to avoid Y2K

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CPA Risk Services

• Risk Services are already a profitable niche for
  firms however no consistency in delivery
• Identified as top new opportunity for CPAs
• Risk Task Force formed recommendations made to
  ASEC
• Risk Model being developed anticipate big firm
  buy in and support

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CPA Risk Services

• Risk Model document will be the spring-board for
  new risk services such as
• Risk Assessment Services
• Risk Measurement Services
• Risk Reduction Services
• Model expected to be completed by December 1999