Copyright 2003 Pearson Education Canada Inc. CHAPTER 24 Assurance Services: Direct Reporting Engagements and Business Advisory Services
Copyright 2003 Pearson Education Canada Inc. What is ISO ? WebTrust ? ISO ? ? ??
Copyright 2003 Pearson Education Canada Inc. What is ISO? -non governmental body -started in promotes the development of standardization to facilitate the international exchange of goods and services
Copyright 2003 Pearson Education Canada Inc. What is WebTrust ? -joint project of CAs and CPAs -assurance service for customers of e-commerce
Copyright 2003 Pearson Education Canada Inc.WebTrust -assurance relates to: - business practice disclosure - transaction integrity - information protection
Copyright 2003 Pearson Education Canada Inc.WebTrust - business practice disclosure the entity must disclose its business practices for e-commerce transactions, then execute them accordingly
Copyright 2003 Pearson Education Canada Inc.WebTrust - transaction integrity controls must be in place to ensure that customers’ orders placed using e-commerce are completed and billed as agreed
Copyright 2003 Pearson Education Canada Inc.WebTrust - information protection controls are maintained to ensure that private customer information is protected
Copyright 2003 Pearson Education Canada Inc. WebTrust Reporting - special audit format used (see chapter 23)
Copyright 2003 Pearson Education Canada Inc. WebTrust Reporting - introductory paragraph indicates that auditor is expressing opinion on management’s controls
Copyright 2003 Pearson Education Canada Inc. WebTrust Reporting - scope paragraph defines the standards and explains work required of the auditor
Copyright 2003 Pearson Education Canada Inc. WebTrust Reporting - opinion paragraph indicates that standards were met
Copyright 2003 Pearson Education Canada Inc. WebTrust Reporting - explanatory paragraph indicates that fraud or errors may not be detected, and that controls are subject to change
Copyright 2003 Pearson Education Canada Inc. WebTrust Reporting - explanatory paragraph indicates that WebTrust seal is symbolic of report’s contents, but does not provide assurance in itself
Copyright 2003 Pearson Education Canada Inc. WebTrust Reporting - disclaimer paragraph states that there is no representation regarding the quality of goods and services provided by client
Copyright 2003 Pearson Education Canada Inc. ISO Audit - Assurance and Related Services Guideline (AuG- 19) must be followed -compliance audit (Ch. 25) relates to client adhering to environmental laws
Copyright 2003 Pearson Education Canada Inc. Forensic Audit - often carried out on behalf of insurance companies -attempts to uncover fraudulent claims
Copyright 2003 Pearson Education Canada Inc.Forensic - uses expanded “skill set” beyond the normal range of financial auditing -Association of Certified Fraud Examiners
Copyright 2003 Pearson Education Canada Inc. Business Valuation - used whenever there is a need to obtain an accurate measure of market values: -marital breakdown -estate planning -business mergers
Copyright 2003 Pearson Education Canada Inc. Other Advisory Services 1.Risk management services 2.Controls assessment services 3.Information systems quality assurance services 4.Information systems selection and implementation assistance