会计专业英语Chapter

FeatureTopicSkepticismAppliestoAllTypesofEngagements14.1OtherAssuranceEngagementsReviewandComplianceServicesManynon-publiccompanieshavetheirfinancialstatementsreviewedorcompliedbyaCPA,insteadofhavingthemaudited.ThestandardsforcompilationsandreviewsoffinancialstatementsarecalledStatementsonStandardsforAccountingandReviewServices(SSARS).Becausereviewserviceandcompilationservicesprovidelessassurancethanaudits,itisimportantthattheaccountantestablishanunderstandingwiththeclient,preferablyinawrittenengagementletter.AreviewserviceengagementisdesignedtoallowtheaccountanttoexpresslimitedassurancethatthefinancialstatementsareinaccordancewithGAAP.ReviewandComplianceServicesProceduresSuggestedforReviewsObtainknowledgeoftheaccountingprinciplesandpracticesoftheclient'sindustry.Obtainknowledgeoftheclient.Makeinquiriesofmanagement.Performanalyticalprocedures.Obtainlettersofrepresentation.RequirementsforCompilationInacompilationengagement,theaccountantmustdothefollowing:Possessknowledgeabouttheaccountingprinciplesandpracticesoftheclient’sindustry.Knowtheclient,thenatureoftheclient'sbusinesstransactions,accountingrecords,andemployees;andthebasis,form,andcontentofthefinancialstatements.Makerinquiriestodeterminewhethertheclient'sinformationissatisfactoryReadthecompiledfinancialstatementsandbealertforanyobviousomissionsorerrorsinarithmeticandGAAP.ReviewofInterimFinancialInformationforPublicCompaniesTheobjectofaninterimreviewistoprovidetheaccountantwithabasisforreportingtomanagement,theboardofdirectors,theshareholders,andothersonsignificantmattersfoundthroughinquiryandanalyticalprocedures.OtherAuditsorLimitedAssuranceEngagementsDebtComplianceLettersandSimilarReportsAttestationEngagements.TypesofattestationsEngagementsLevelsofAssuranceTheattestationstandardsdefinethreelevelsofengagementsandrelatedformsofconclusions:1.Examinations,reviews,andagree-uponprocedures.AnExaminationresultsinaconclusionthatsiinapositiveform.2.Inareview,thepractitionerprovidesaconclusionintheformofanegativeassurance.3.Inanagree-uponproceduresengagement,theprocedurestobeperformedareagreeduponbythepractitioner,theresponsiblepartymakingtheassertions,andthespecificpersonswhoaretheintendedusersofthepractitioner’report.ProspectiveFinancialStatementsItreferstopredictedorexpectedfinancialstamensinsomefutureperiodoratsomefuturedate.Twogeneraltypes:forecastsandprojections.1.Forecastsareprospectivefinancialstatementsthatpresentanentity’sfinancialposition,resultsofoperations,andcashflows,tothebestoftheresponsibleapplication.2.Projectionsareprospectivefinancialstatementsthatpresentanentity’sfinancialposition,resultsofoperations,andcashflows,tothebestoftheresponsibleparty'sknowledgeandbelief,givenoneormorehypotheticalassumptions.ProspectiveFinancialStatementsReportingonInternalControlWhenthepractitionerisengagedtoreportoninternalcontrolundertheattestationstandards,allareasofinternalcontrolareincludedunlessspecificallyexcludedbyagreement.Agree-UponProceduresEngagementsWhentheauditorandmanagementorathird-partyuseragreesthattheauditwillbelimitedtocertainspecificauditprocedures,itisreferredtoasanagreed-uponproceduresengagement.14.2QualityControlQualityControlQualitycontrolisaprocessemployedtoensureacertainlevelofqualityinaproductorservice.Qualitycontrolinvolvestheexaminationofaproduct,service,orprocessforcertainminimumlevelsofquality.Qualitycontrolcancovernotjustproducts,services,andprocesses,butalsopeople.Ahigh-qualityjobgreatlyincreasestheprobabilitythatauditresultswillbereliedon,andrecommendedimprovementswillbeseriouslyconsideredandimplemented.ChapterSummary