Auditing Hw Solutions Essay

9855 Words Oct 28th, 2012 40 Pages
Chapter 1 SOLUTIONS FOR EXERCISES AND PROBLEMS 1.47 Audit, Attestation, and Assurance Services

Students may encounter some difficulty with this matching question because the Special Committee on Assurance Services (SCAS) listed many things that heretofore have been considered “attestation services” (long before assurance services were invented). As a result, we believe that this question is a good vehicle for discussing the considerable overlap between attestation and assurance services.

             

Real estate demand studies: Assurance service

Ballot for awards show: Assurance service

Utility rates applications: Assurance service

Newspaper circulation audits: Assurance service

Third-party reimbursement
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You might point out to students that the distinctions among compliance, economy and efficiency, and program results audits are not always clear. The “solution” is shown in the following matrix form, showing some engagement numbers in two or three cells. The required schedule follows.

Type of Audit Engagement Financial Statement Auditor Independent CPA Internal auditor Governmental (GAO) auditor IRS auditor Bank examiner 5 7 2, 10 6, 8 4, 8 1, 3 1, 3, 9 Compliance Economy and Efficiency Program Results

Type of Audit 1. Proprietary school’s training expenses Advertising agency financial statements Dept. of Defense launch vehicle Municipal services Tax shelters Test pilot reporting Bank solvency Economy and efficiency or program results Financial statement Economy and efficiency or program results Economy and efficiency Compliance Compliance Compliance

Type of Auditor Governmental (GAO) auditors Independent CPAs Governmental (GAO) auditors Internal auditors IRS auditors Internal auditors Bank examiners

2. 3.

4. 5. 6. 7.


Materials inspection by manufacturer States’ reporting chemical use data Sports complex forecast

Compliance or Economy and Efficiency Program goal

Internal auditors


Governmental (GAO) auditors Independent CPAs


Financial statement


Financial Assertions and Audit Objectives

The objectives for the audit

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