Post Class
What is the difference between the 10 GAAS standards and the 11 Attestation standards?
One difference in the attestation standards is that when performing an attestation service, CPAs
are not required to perform a test of internal controls.
Another difference is that when performing an attestation function you must make sure there is a
criterion to compare the service too.
You can make your own criteria that follow these guidelines: Objectivity, Measurability,
Completeness, and Relevance.
Audit vs. Attestation, these are both assurance services.
Week 1 homework
From page 1097 of AICPA Professional Standards
Attest services use to only mean expressing an opinion (positive opinion) on financials by
performing an audit in accordance with GAAS.
Accountants use to try and apply GAAS to other types of attestation services, but this became
difficult at the services changed.
The main objective of the attestation standards is to provide guidance for CPAs performing a
wide range of attest functions, and guide future AICPA standard-setting bodies.
The attestation standards are an extension of the ten GAAS standards. They are just broader in
scope.
There are eleven attestation standards.
Attestation examples: report of internal controls, computer software, compliance with statutory,
regulatory, contractual requirements, investment statistics, supplementary information to
financials.
Attestation standards only apply to CPAs in public accounting.
AT standards don’t supersede any existing SASs or SSARSs.
Week 2 notes 1/17/12
Where do we get our guidelines for internal controls? Who says what is good or not? Look for
COSO
Journals- learning log of what I am learning. Completeness, Existence, Presentation, Rights and
Obligation, Measurements.
For our attestation of a classmate’s learning we are going to attest to see if they met their
objectives for the class. How are we going to meet the 11 attestation standards? We are going to
state an opinion and create a report. The journal will be 1 source of information. (EXAMPLE: I
am going to prepare for 14 of the 15 class periods. Then you will see if they were prepared.) An
attestation of internal controls is a good example. Where are you going to get some criteria?
According to AT101 you can set your own criteria as long as you follow these guidelines.
Objectivity, Measurability, Completeness, Relevance. This is a 14 week project that needs to be
an ongoing.
What do I, as the client, want to assert to the auditor.
Have team members do different things and have each person do a specific part.
AICPA.org, PCAOB.org
GAAS vs. PCAOB
PCAOB is funded by the fees auditors pay to be registered with them.
Audit vs. Attestation, these are both assurance services.
Audit = type of attestation that deals with financials in accordance with GAAP.
Attestation = other services assertion
Outline of an audit