Modern Auditing:

Assurance Services and the Integrity

of Financial Reporting, 8th Edition

William C. Boynton
California Polytechnic State
University at San Luis Obispo
Raymond N. Johnson
Portland State University

Chapter 20 – Attest and Assurance Services, and Related

Reports
Chapter Overview
Universe of Assurance Services
 Levels of Assurance
• Audit or Examination-level Assurance

• Review-level Assurance
– Negative Assurance

• Agreed-upon Procedures

• No Assurance
– Accounting and Compilation Services
Assurance/Service Matrix
 Types of Engagements
• Statements on Auditing Standards (SAS)

• Statements on Standards for Attestation

Engagements (SSAE)

• Statements on Standards for Accounting

and Review Services (SSARS)
Other SAS Engagements – Special
Reports
• Other Comprehensive Bases of
Accounting

• Specified Elements, Accounts, or Items

of a Financial Statement

• Compliance Reports Related to Audited

Financial Statements
Accepting and Performing Attest
Engagements
• Attest Engagement
– Gathers evidence
– Objectively assesses the measurements and
communication
– Reports the findings

• Attestation Standards
– SSAE 1 (Figure 20-7)
– General Standards
– Standards of Fieldwork
– Standards of Reporting
 Engagements Performed Under
Attestation Standards
• SSAE 101 Engagements
– CPA WebTrust
• Business and information privacy practices
• Transaction integrity
• Information protection

– CPA SysTrust
• Availability
• Security
• Integrity
• Maintainability
 Engagements Performed Under
Attestation Standards
• Agreed-upon Procedure Engagements
– Report of Procedures and Findings

• Reporting on Prospective Financial

Information
– Types of Prospective Financial Information
• Financial Forecast
• Financial Projection
– Types of Services
• Compilation
• Examination
• Application of Agreed-upon Proceures
 Engagements Performed Under
Attestation Standards
• Compliance Attestation
– Examination Engagements
• Nature of Compliance Requirements
• Nature and Frequency of Noncompliance
• Qualitative Considerations

– Agreed-upon Procedure Engagements

• Compliance with Specified Requirements
• Effectiveness of Entity’s Internal Control
• Both of the Above
Accounting and Review Services

• Nonpublic Companies
– Review of Financial Statements
• Review Engagement

– Compilation of Financial Statements

• Compilation Engagement
 Other Assurance Opportunities

• CPA Risk Advisory

– Business Risk Management
• Identification and assessment of primary
potential risks

• Independent assessment of identified risks

• Evaluate system of identification and

limitation of risks
 Other Assurance Opportunities

• CPA Performance View

– Performance Measurement
• Assess whether systems a properly
measuring activities

• Evaluate employees

• Measure actual performance against

objectives

• Identify areas providing best opportunities

for improvement
 Other Assurance Opportunities

• CPA Eldercare
– Attestation Engagements

– Direct Services

– Consulting Services