Tack number in the Assurance Agreement

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How to Tack number in the Assurance Agreement

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In this session, Professor For Hat discusses the difference between the AICPA attestation standards and auditing standards. Attestation is a form of assurance service where CPAs give opinions on financial statements to help decision-makers make better decisions. This session is part of the assurance service module, covering reviews, compilations, and now attestation. The goal is to distinguish attestation from other forms of assurance services and understand how assurance and attestation work together to improve the quality of financial information for decision-makers.

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Is agreed upon procedures an attest engagement?

An agreed-upon procedures attest engagement is one in which a practitioner is engaged to issue a report of findings based on specific procedures performed on subject matter.

What is subject matter in agreed upon procedures?

The subject matter covered in an AUP engagement may be financial or nonfinancial information. Examples include a review of transactions related to cash receipts or cash disbursements within an organization, or the effectiveness of the controls around accounting processes.

What are the agreed upon procedures?

An agreed-upon procedure is a standard a company or client outlines when it hires an external party to perform an audit on a specific test or business process. The procedures, which are called audit standards, are designed and agreed upon by the entity conducting the audit, as well as any appropriate third parties.

What are the three 3 most commonly sought assurance services?

In order of increasing level of rigor, accountants generally offer three types of assurance services: compilations, reviews and audits.

What type of engagement is agreed upon procedures?

j. A statement that an agreed-upon procedures engagement involves the practitioner performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed. k.

What is a attestation engagement?

An attest engagement is one in which a CPA in public practice (i.e., practitioner) is engaged to, or does, issue an examination/audit, review, compilation or agreed-upon procedures report on subject matter, or an assertion about subject matter, that is the responsibility of another party (usually management).

What assurance is provided by the auditor in an agreed upon procedures engagement?

An agreed-upon procedures engagement involves the performance of procedures of an assurance nature from which no conclusion or opinion is expressed by the member, and no assurance is provided to intended users. Instead only factual findings obtained as a result of the procedures performed are reported.

What level of assurance is provided by a review engagement and why?

A review engagement provides a moderate level of assurance that the information subject to review is free of material misstatement, this is expressed in the form of negative assurance.

What level of assurance is provided in an agreed upon procedures engagement?

4. An agreed-upon procedures engagement involves the performance of procedures of an assurance nature from which no conclusion or opinion is expressed by the member, and no assurance is provided to intended users. Instead only factual findings obtained as a result of the procedures performed are reported.

Who can perform agreed upon procedures?

4. In an agreed-upon procedures engagement, the practitioner performs the procedures that have been agreed upon by the practitioner and the engaging party, where the engaging party has acknowledged that the procedures performed are appropriate for the purpose of the engagement.

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