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ASSURANCE AND NON-ASSURANCE SERVICES - Coggle Diagram
ASSURANCE AND NON-ASSURANCE SERVICES
Review Financial Statement
comprise inquire and analytical procedures thar designed to review reliability of an assertion
involve audit skills and techniques and gathering evidence but does not involve assessment of accounting and internal control systems, test of records and other procedures
provide moderate level of assurance that the information subject to review is free of material misstatement
Objective of Review Engagement
enable Chartered Accountant to state whether in all materials respects in financial statements are prepared in accordance with identified financial reporting framework
General Principles of Review Engagement
auditor need to plan and perform the review with an attitude of professional skepticism and may exist
for the purpose of expressing negative assurance in review report, auditor should obtain sufficient evidence through inquiry and analytical procedures to be able to draw conclusion
accountant need to comply with code of ethics for professional accountants
Terms of Engagement
ensure that there is a clear understanding between client and auditor regarding engagement
Procedures in Review Financial Statement
obtain understanding of accounting systems and nature of entity's assets, liabilities, revenues and expenses
inquiries of entity's personnel responsible for the financial reporting
obtain procedures of entity business and industry in which the entity operates
inquire about actions taken at meetings of BOD, shareholders and other relevant board committees
perform analytical procedures to identify relationship and individual item that appear to be unusual
read financial statements to determine if they conform to the identified financial reporting framework
perform certain level of audit technique for every balance sheet items
obtain written representations from management
Reporting in Review Financial Statements
qualified report if not pervasive effect
adverse report of pervasive effect
provide moderate level assurance that information subject to review is free of material misstatement that is expressed in form of negative assurance
Agreed upon procedures
engagement may involve the auditor in perform certain procedures concerning individual items if financial data, a financial statement or even a complete set of financial statements
document matters which are important in providing evidence to support report of factual findings
procedures and evidence
inquiry and analysis
re-computation, comparison and other clerical accuracy clerk
depends on what has been agreed with client
Report need to describe purpose and procedures of engagement in sufficient detail to enable reader to understand nature and extent of work performed and report of actual findings
Objective of an agreed-upon procedures engagement
for auditor to carry out procedures of an audit to which the auditor and the entity and any appropriate third party have agreed and to report on factual finding and no assurance is expressed
Terms of agreed upon procedures engagement
ensure that there is clear understanding between client and auditor regarding agreed-upon procedures and condition of engagement