Chapter 20 - Solution Manual

Chapter 20 - Solution Manual - Chapter 20 - Additional...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 20 - Additional Assurance Services: Other Information CHAPTER 20 Additional Assurance Services: Other Information Review Questions 20-1 Assurance services are independent professional services that improve the quality of information, or its context for decision makers; attestation services are those assurance services that involve issuing an examination, review or agreed-upon procedures report on subject matter (or an assertion about the subject matter) that is the responsibility of another party. Assurance services may go beyond attestation services in that they may involve analyzing data or placing it in a form to facilitate decision making. 20-2 The statement is incorrect. While it is correct that all attest services are assurance services, some assurance services are not attest services (e.g., some PrimePlus/ElderCare engagements) 20-3 Assurance services developed as a natural extension of the audit function. Management has recognized that contracting costs may be reduced in many situations by providing users access to information that is certified as to its reliability. Developments in information technology also have fueled the demand for assurance services as users can now have instantaneous access to a broad range of "on-line" information that may be customized to their needs. 20-4 No. While attestation engagements involve a written report, not all assurance services result in a written report as any reasonable form of communication is acceptable. 20-5 The three types of attestation engagements outlined in the attestation standards are: (1) Examination— An examination is designed to provide the highest level of assurance that CPAs provide—the same level as an audit of financial statements. When performing an examination, CPAs select procedures to gather sufficient evidence to allow the issuance of a report with a positive opinion on whether the subject matter being examined are presented in accordance with the selected criteria. Sufficient evidence has been obtained when attestation risk is driven to a low level. 20-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 20 - Additional Assurance Services: Other Information (2) Review— A review involves performing limited procedures, such as inquiries and analytical procedures. In performing a review, the CPAs gather sufficient evidence to drive attestation risk to a moderate level. (3) Agreed-upon procedures— An agreed-upon procedures engagement involves performing procedures that were agreed-upon with specified users of the report. Reports on agreed-upon procedures are restricted use reports in that they are intended only for those specified users. 20-6 Agreed-upon procedures engagements result in restricted use reports , whereas examinations and reviews ordinarily result in general use reports . (However, nothing in the attestation standards prohibits CPAs from restricting either an examination or a review report.) 20-7
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 14

Chapter 20 - Solution Manual - Chapter 20 - Additional...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online