THE NEED FOR AUDITING AND OTHER ASSURANCE SERVICES
Company makes his own FS
To manage business risk
Investors does not have access to all company’s records
Kaya merong auditing
ASSURANCE, ATTESTATION, AUDIT, AND OTHER SERVICES
Assurance – enhance degree of confidence [normally the term used for audit]
Can be given by CPA or other profession
Attestation – assurance as to reliability [of an information]
Can only be made by the CPA
There are different types of attestation
1. Audit
2. Review
3. other assurance engagements
Non-Assurance – useful for the client
1. Related Services
a. Agreed-upon procedures
b. Compilation
Maroon – mga pag aaralan sa A22
2. Not Related –
a. tax