[AUD] Attestation Standards, SSAE
0. General
assertion: whether the subjective matter is based on or conformity with the criteria selected
- included in a rep letter
- written assertion not obtained > report restricted
- accountant o, auditor x
subject matter(party' resp)
1. historical FS (interim/annual)
2. ICFR (full / part)
3. prospection
4. proforma
5. MD & A
6. Compliance
7. Web trust
Criteria: standards used to evaluate subject matter
- suitable
- available
Types of attestation engagement
Examination: positive assurance, opinion
Review: negative/limited assurance, conclusion
Agreed-upon procedure: no assurance, finding
- procedures performed as described
- use of the report is limited
restriction
1) criteria suitable for limited number of party
2) criteria are available to specified parties
3) written assertion not provided by the resp party
4) agreed-upon engagements
5) MD&A review report
6) SOC1, SOC2 report
7) Examination of projection
1. Agreed-upon procedures engagements
practitioner performs specific procedures on the subject matter and reports the findings
1) the engaging party agrees, acknowledges the procedures, appropriate for the intended purpose of the engagement
2) A separate paragraph, restricts the use
3) CPA independent
4) CPA performs procedures,
report description of the procedures performed, related findings( adequate knowledge of the subject matter )
and * materiality thresholds(if agreed by client materiality level as part of the engagement )
Report
describe restriction in a report or withdraw
additional engaging p may be added after completion of the engagement
| Independent Account's report we have performed the procedure~(id subject matter) B has agreed to and acknowledged that procedures performed may not be suitable for any other purpose The procedures and associated findings are as follows engaged by B to perform agreed-upon(여기서 이 표현 처음나옴) attestation standards, aicpa not examination/review accordingly, not express opinion/ conclusion independent, ethical resp |
* no materiality, unless materiality level is agreed as part of the engagement with the client
2. Prospective Financial Statements
examination, agreed-upon (review x), compilation(rep letter)
significant reservation
Forecast 예보
general use/ limited use
Projection 가정 > 추정값
hypothetical assumptions
limited use only
disclosure
FS, background info, Assumptions
Examination
Q,A > Departure f aicpa
A > unreasonable assumptions
D > scope limitation
| Independent Accountant's Report we examined ...guidelines for AICPA mgt resp preparing, presenting accordance w AICPA accordance w aicpa reasonable assurance forecast is presented in accordance w obtain evidence NTE assessment of risk of MM sufficient appropriate in our opinion ~is presented, in accordance w guidelines aicpa, suitably supported and provide a reasonable basis significant reservation |
Compilation (SSARS)
assumptions> rep letter(must)
independent not required
| Accountant's report standards established by aicpa no evaluation for assumptions no opinion significant reservation |
3. Pro forma financial information
adjust earlier historical financial info
- examination, review, compilation
- must include complete, original FS(audited/ reviewed)
Report
1. id of pro forma adjustments info
2. refer to FS from which info derived
3. objective and its limitations
Examination report
| We have examined~ historical pro forma condensed FS are derived from~ objective of~ not necessarily indicative of~ opinion assumption reasonable basis adjustments appropriate effect, pro forma column reflects |
4. MD&A
- examination, review(not SEC requirement)
Review
1) any info that came to the practitioner's attention (negative assurance)
- SEC required elements
- amount derived from FS
- underlying info(estimates, assumptions) reasonable basis for MD&A disclosure
2) consider IC (but not TOC)
3) presented in interim and annual reports(public company)
4) review report use restriction
Examination
1) express an opinion on(positive assurance)
- SEC required elements
- amount derived from FS
- underlying info(estimates, assumptions) reasonable basis for MD&A disclosure
2) TOC
3) with audited FS
4) assertion
occurrence, completeness, consistency w FS, Prensentation&Disclosure (* 오답 R&O, V)
5. Compliance Attestation
- examination, agreed-upon(x review)
6. Service organization control(SOC) report
SOC 1
type 1: design of controls, cannot reduce control risk, disclaimer op on operating effectiveness
type 2: design and operating effectiveness of controls, may reduce control risk
intended solely for service org mgt, service org customer, customer's auditor