1. 24 - 1 Copyright  2003 Pearson Education Canada Inc. CHAPTER 24 Assurance Services: Direct Reporting Engagements and Business Advisory Services

2. 24 - 2 Copyright  2003 Pearson Education Canada Inc. What is ISO ? WebTrust ? ISO 14000 ? ? ??

3. 24 - 3 Copyright  2003 Pearson Education Canada Inc. What is ISO? -non governmental body -started in 1947 -promotes the development of standardization to facilitate the international exchange of goods and services

4. 24 - 4 Copyright  2003 Pearson Education Canada Inc. What is WebTrust ? -joint project of CAs and CPAs -assurance service for customers of e-commerce

5. 24 - 5 Copyright  2003 Pearson Education Canada Inc.WebTrust -assurance relates to: - business practice disclosure - transaction integrity - information protection

6. 24 - 6 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

7. 24 - 7 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

8. 24 - 8 Copyright  2003 Pearson Education Canada Inc.WebTrust - information protection controls are maintained to ensure that private customer information is protected

9. 24 - 9 Copyright  2003 Pearson Education Canada Inc. WebTrust Reporting - special audit format used (see chapter 23)

10. 24 - 10 Copyright  2003 Pearson Education Canada Inc. WebTrust Reporting - introductory paragraph indicates that auditor is expressing opinion on management’s controls

11. 24 - 11 Copyright  2003 Pearson Education Canada Inc. WebTrust Reporting - scope paragraph defines the standards and explains work required of the auditor

12. 24 - 12 Copyright  2003 Pearson Education Canada Inc. WebTrust Reporting - opinion paragraph indicates that standards were met

13. 24 - 13 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

14. 24 - 14 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

15. 24 - 15 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

16. 24 - 16 Copyright  2003 Pearson Education Canada Inc. ISO 14000 Audit - Assurance and Related Services Guideline (AuG- 19) must be followed -compliance audit (Ch. 25) relates to client adhering to environmental laws

17. 24 - 17 Copyright  2003 Pearson Education Canada Inc. Forensic Audit - often carried out on behalf of insurance companies -attempts to uncover fraudulent claims

18. 24 - 18 Copyright  2003 Pearson Education Canada Inc.Forensic - uses expanded “skill set” beyond the normal range of financial auditing -Association of Certified Fraud Examiners

19. 24 - 19 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

20. 24 - 20 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