UNIVERSE OF CPA SERVICES

UNIVERSE OF CPA SERVICES

1. RELATED SERVICES

   • REVIEW
     • objective: to prepare and review financial statements to ascertain whether they are reasonable and plausible
     • comprises inquiry and analytical procedures designed to review the reliability of an assertion that is the responsibility of one party for use by another party
     • provides a moderate level of assurance expressed in the form of negative assurance
   • COMPILATION
     • auditor(acountant) is engaged to use accounting expertise as opposed to auditing expertise to collect, classify, and summarize financial info
     • entails reducing detailed data to a manageable and understandable form w/o a requirement to test the assertions underlying that info
     • accountant expresses no assurance on the financial info
   • AGREED-UPON PROCEDURES
     • auditor is engaged to carry out those procedures of an audit to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings
     • report is restricted to those parties that have agreed to the procedures to be performed
     • no assurance is expressed and recipient form their own conclusions from the report of the auditor

2. AUDIT

   • objective: to enable the auditor to express an opinion whether the FS are prepared, in all material respects, in accordance with an identified financial reporting framework
   • auditor obtains sufficient appropriate audit evidence to be able to draw conclusions on which to base that opinion
   • enhances the credibility of FS by providing a reasonable assurance
   • report provided is in the form of positive assurance