Matakuliah
Tahun
: Manajemen Kinerja Sistem Komputer
: Feb - 2010
10. Other Certification, Investigation,
and Origination Assurance Service
Pertemuan 19-20
10. Other Certification, Investigation, and Origination
Assurance Service
01. Background Concepts
Attestation Standards
• In its role as CPAs' trade association, the AICPA has
established 11 attestation standards and a set of related
Statements on Standards for attestation Engagements
that generalize GAAS concepts for nonfinancial
statement assertions and add specific standards for
some specialized services.
•
Figure 10.1 display a sample of a attestation services offered by CPAs, as well as
selected service for which the CPA is the source of information.
02. Non Financial Statement Certifications
Internal Control
Management would like assurance that its internal control is well
designed to meet its objectives and is operating effectively.
• Reports on internal control
– Internal control examination reports by independent auditors can
either "stand alone" or result from a financial audit .
– A standard examination report for a stand-alone certification of
management's assertion about internal control over financial reporting
assertions under AICPA standards for examination (comparable to
GAAS for audits) parallels the auditor's standard report on financial
statements.
Figure 10.2 shows an auditor's stand-alone internal
control examination report that is parallel to a standard
auditor's report on financial statements
Figure 10.3 shows such a report for a retired workers'
association and a response by management.
CPA Web Trust
The World Wide Web offers opportunities for
substantial reductions in the cost of accessing
customers and conducting business
transactions
Figure 10.4 The CPA examines a Web page of a client and
allows those satisfying certain criteria to display a CPA Web
Trust seal and a VeriSign trademark.
Compliance with Laws, regulations, and Accepted
Practices
Compliance certification may be required by law and regulation, or
by contract, and thus adds value by enabling transactions.
Forward-looking Information
Many outside parties such as prospective stockholders and other
investors would like to know management's forecasts for earnings
and balance sheets.
03. Certification Risk Levels
•
Figure 10.5 summarizes the major requirements of the four levels of attestor association
including required conclusions versus required procedures, who sets the procedures,
and the attest report distribution limit, if any.
Reviews of Financial Statements
• The form of assurance in a review report has been
called negative assurance since it expresses no opinion
and the auditor is allowed to report only a conclusion
that "nothing came to our attention" that suggest the
statements are materially misstated.
Figure 10.6 presents a review report of LJ Appliances'
financial statements for the first quarter of 2000.
As in figure 10.7, the user's risk of material misstatements is
.08 or .28 when relying on reviews since the audit procedures
were fixed and OR varies.
Compilation of Financial Statements
•
To compile financial statements, the CPA takes data from the client and
arranges it in proper form for GAAP-based financial statements.
Agreed-upon Procedures
•
Agreed-upon procedures engagements are increasingly common but are
limited in their scope. They are limited as to the nature of the assertions
being made, the procedures applied, and the expression of conclusions of
the auditor.
Figure 10.8 shows a standard agreed-upon
procedures report.
04. The CPA as Investigator and
Information Source
Investigations
•
•
In an investigation-type contract, the auditor is hired by the party using the
auditor's report.
Auditors as investigators can audit financial statements and issue audit
reports that are identical to certification reports.
Outsourcing Internal Auditing
•
•
When CPA firms are hired to conduct internal auditing for a company, the
CPA typically hires the existing internal audit staff of the client.
These staff members become employees of the CPA firm, and receive
training and supervision from the CPA firm, but continue to conduct
internal audits of their old employer.
Assurer as Information Source
•
Outsourcing Accounting Processing
– Many firms have decided to outsource the operation of their accounting function.
– Some of these companies are very large and the contracts involve substantial
resources.
•
Other Assurance Services
– While large CPA firms offer a wide variety of service, including general
management consulting services, there is a pattern to their choices that can be
tied to their core process reputations.