AUDITS AND ASSURANCE SERVICES

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AUDITS AND ASSURANCE SERVICES

• The Attest Function
• Chapter 1

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Attestation services

• To help improve the reliability and relevance of
  information
• Types
• Audit of financial statements expressing an
  opinion about whether the financial statements
  are in conformity with GAAP
• Review of financial statements
• Agreed upon procedures

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Non - Attestation services

• Types
• Accounting
• Bookkeeping services
• Tax services
• Management consulting services
• Litigation support
• Fraud investigation
• Personal financial planning

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Economic Demand for Auditing

• Business risk risk associated with a companys
  survival and profitability
• Information risk reflects the possibility that
  the information upon which the business risk
  decision was made was innacurate. Causes are
• Remoteness of information
• Biases and motives of provider
• Voluminous data
• Complex exchange transactions

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Nature of Auditing

• Auditing is the accumulation and evaluation about
  information to determine and report on the degree
  of correspondence between the information and
  established criteria. Auditing should be done by
  a competent, independent person.

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Types of Audits

• Financial statements audits - to determine
  whether the overall financial statements are
  stated in accordance with GAAP
• Operational audits to review any part of an
  organizations operating procedures and methods
  for the purpose of evaluating EFFICENCY
  EFFECTIVENESS
• Compliance audits to determine whether the
  auditee is following specific procedures, rules,
  or regulations set by some higher authority

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Types of Auditors

• Certified public accountants all types of
  audits
• General Accounting Office compliance and
  operational audits
• Contralor de PR compliance audits
• Auditores de Hacienda compliance audits
• Internal auditors compliance and operational
  audits

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Questions?