Audit standard free essay sample

Under attestation engagement, an evaluation of subject matter would have already been conducted by the responsible party against a set criteria. We will write a custom essay sample on Audit standard or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As this evaluation is usually given in the form of a report issued to the intended users by the responsible party. This report is actually a claim by the responsible party of a fair evaluation of subject matter. On that assertion made by the responsible party practitioner is asked to confirm whether such assertion of evaluation is fair or not. An engagement to ttest the assertions of responsible party is called attestation engagement. And at the conclusion of attest engagement, practitioner will issue a report in which he may word his opinion as follows: Example 1: In our opinion, the responsible partys assertion that forecasts has been prepared on best estimate basis, is fair. Example 2: In our opinion, the responsible partys assertion that internal controls are working effectively, is fair So, from above discussion we understood that attestation ngagements are a sub-set of many different forms of assurance engagement in which a practitioner issues a report to attest the assertions of against a set criteria. However, assurance engagements is Just any engagement in which users degree of confidence of is reinforced which need not to be attestation When dealing in any kind of business, it is very likely that one will, at some point, come across the need for assurance services, attestation services or auditing services. These common accounting practices are needed and used in many different scenarios, and, more ften than not, are performs by licensed certified public accountants, or CPAs as part of a service toa business client. In order . o better figure out which, if any, of these services are needed, it is imperative that one understand the principal differences between the three. An assurance service is usually requested and completed when it is necessary to better gauge a risk and the reliability of the information at hand. This service, which is independently done and usually by a CPA, assesses all of the information and determines how accurate it all is. Based on that outcome, it then determines how much risk is involved if one were to rely solely on that information on which to make a decision. An audit, for example, is a service that can be classified as an assurance service. Attestation services are requested when it is necessary to check the accuracy of someone elses claim about the reliability of information that has been provided. This service, which is sometimes performed by CPAs or attorneys, usually comes in the form of a letter that states whether or not they feel that the nformation provided by another is as accurate as they claim it to be. By attesting to it, they are essentially saying that they believe the information provided to be accurate and trustworthy, thereby lessening any risk associated with its reliability. Auditing services are used to gauge how well a businesses practices and principals are working. An internal audit determines if the rules are being followed and whether the rules in place are beneficial as they are or if change is required to reap greater benefits to the company audit standard By anufly