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Auditor services are work that an audit firm performs for their clients. Except for
consulting services, the work that auditors do is under the guidance of engagement
standards set by the International Auditing and Assurance Standards Board
(IAASB). All auditor services standards have as their basis the IFAC Code of Ethics
and International Standards on Quality Control (ISQC).
Some engagement standards are based on International Framework for Assurance
Engagements (assurance engagements), and others result from the Related
Services Framework (related services engagements). Three sets of standards
(ISAs, ISREs and ISAEs) share the assurance engagement framework and one
standard set (ISRS) is based on the related services framework. ISAs, ISAEs, ISREs
and ISRSs are collectively referred to as the IAASBs Engagement Standards.
The three sets of standard based on the assurance framework are ISA, ISRE and
ISAE. International Standards on Auditing (ISA) 100 Audits and Reviews of
Historical Financial Information describes the main concepts applicable to audit,
review or special purpose engagements. International Standards on Assurance
Engagements (ISAE) 3000R Assurance Engagements on Subject Matter Other
than Historical Financial Information describes concepts applicable to assurance
services whose subject matter is not related to historical financial information. The
ISAE standards are divided into two parts:
(1) ISAEs 3000__3399 which are topics that apply to all assurance engagements
(2) ISAEs 3400__3699 which are subject specific standards, for example,
standards relating to examination of prospective financial information.
Engagements covered by International Standards on Related Services ISRS are
based on the Related Services Framework a framework that is still in the
development stage at the IAASB. Standards under this framework (ISRSs) are
applied currently to two related services: agreed-upon procedures (ISRS 4400) and
compilations (ISRS 4410).
Assurance engagements are performed by a professional accountant and are
intended to enhance the credibility of information about a subject matter. The subject
matter of an assurance is the topic about which the assurance is conducted.
Assurance engagement means an engagement in which a practitioner (professional
accountant or auditor) expresses a conclusion (in report form) that is designed to
enhance the degree of confidence of users.
The International Framework for Assurance Engagements describes five elements
that all assurance engagements exhibit:
(1) a three party relationship involving a practitioner, a responsible party, and the
intended users;
(2) a subject matter;
(3) suitable criteria;
(4) evidence; and (5) an assurance report.
Assurance engagements always involve three separate parties: a practitioner, a
responsible party and the intended users. The subject matter of an assurance is the
topic about which the assurance is conducted. Subject matter could be financial
statements, statistical information, non-financial performance indicators, systems
and processes (e.g. internal controls, environment, IT systems) or behavior (e.g.
corporate governance, compliance with regulation, human resource practices).
Suitable criteria, which can either be established or specifically developed, are the
benchmarks (standards, objectives, or set of rules) used to evaluate evidence or
measure the subject matter of an assurance engagement. In general, the same
evidence gathering procedures, quality control and planning process apply to
assurance services as applies to audits.

The auditor provides a written report containing a conclusion that conveys the
assurance obtained as to whether the subject matter conforms, in all material
respects, to the identified criteria.
Where reviews of financial statements differ most from audits is in the limited
procedures performed (limited in inquiry of management and analytical procedures)
and the review report. The objective of a review of financial statements is to enable
an auditor to state whether anything has come to the auditors attention that causes
the auditor to believe that the financial statements are not prepared, in all material
respects, in accordance with an identified financial reporting framework (negative
Sometimes the auditor may have a request for a financial statement audit based on
historical financial information, but which is not based on the financial statements as
a whole or on IFRS or the requisite national standard. An auditor may be called upon
to do special purpose reports. Sometimes there are audits that give an opinion on
compliance with legal agreements required of a company. Management or the board
of directors may request a summarized financial statement. Small businesses, which
generally are not required to comply with IFRS or a national standard required of
publicly traded companies,may feel that an audit based on the cash basis, an income
tax basis, or a basis required by regulatory agencies is needed.
The special purpose reports include:
1 Reports on Financial Statements Prepared in Accordance with a Comprehensive
of Accounting other than International Accounting Standards or National Standards
such as:
(a) That used by an entity to prepare its income tax return.
(b) The cash receipts and disbursements basis of accounting.
(c) The financial reporting provisions of a government regulatory agency.
2 Reports on a Component of Financial Statements.
3 Reports on Compliance with Contractual Agreements.
4 Reports on Summarized Financial Statements.
The International Standard on Assurance Engagements (ISAE) 3000R establishes
basic principles and essential procedures for professional accountants in public
practice for the performance of assurance engagements on subject matters other
than historical financial information. Assurance engagements other than historical
financial information have two main components: (1) topics that apply to all
assurance engagements (ISAEs 3000__3399) and (2) subject specific standards
(ISAEs 3400__3699). The only subject specific standard currently is for prospective
financial statements.
Subject specific standards for assurance services on other than historical financial
information may be thought of as falling into four subject matter groups:
1 subject matter related to prospective financial statements;
2 subject mater related to non-financial information (e.g. corporate governance,
statistical, environmental);
3 subject matter related to systems and processes (e.g. corporate governance,
environmental management systems, and internal control (such as that required
under the Sarbanes-Oxley Act));
4 subject matter about behavior (corporate governance, compliance, and human
resources practices).

Certification Exam Question 4.1

Which of the following is a conceptual difference between the International
Standards for Assurance Engagements (ISAE) and International Auditing Standards
(A) ISAEs provide a framework for the attest function beyond historical financial
(B) The requirement that the practitioner be independent in mental attitude is omitted
from the ISAEs.
(C) The ISAEs do not permit an attest engagement to be part of a business
acquisition study or a easibility
(D) Internal control is important in ISAs but not ISAEs.
Certification Exam Question 4.2
Financial statements of a non-public entity that have been reviewed by an
accountant should be accompanied by a report stating that a review:
(A) Provides only limited assurance that the financial statements are fairly presented.
(B) Includes examining, on a test basis, information that is the representation of
(C) Consists principally of inquiries of company personnel and analytical procedures
applied to financial data.
(D) Does not contemplate obtaining corroborating evidential matter or applying
certain other procedures ordinarily performed during an audit.

Sustentacion: Estos deben tener una seguridad razonable, es decir, la informacion

debe ser real y tiene que estar soportada por pruebas

Certification Exam Question 4.3

An auditors report on financial statements prepared on the cash receipts and
disbursements basis of accounting should include all of the following except:
(A) A reference to the note to the financial statements that describes the cash
receipts and disbursements basis of accounting.
(B) A statement that the cash receipts and disbursements basis of accounting is not
a comprehensive basis of accounting.
(C) An opinion as to whether the financial statements are presented fairly in
conformity with the cash receipts and disbursements basis of accounting.
(D) A statement that the audit was conducted in accordance with ISAs.

Sustentacion: informe del ingreso efectivo y desembolso no hacen parte de los

inoforme de los estados financieros, ya que, no es una base para la comprencion
de la situacion financier de una empresa
Certification Exam Question 4.4
An auditor may express an opinion on an entitys accounts receivable balance even
if the auditor has disclaimed an opinion on the financial statements taken as a whole
provided the:
(A) Report on the accounts receivable discloses the reason for the disclaimer of
opinion on the financial statements.
(B) Distribution of the report on the accounts receivable is restricted to internal use
(C) Auditor also reports on the current asset portion of the entitys balance sheet.
(D) Report on the accounts receivable is presented separately from the disclaimer
of opinion on the financial statements.

Sustentacion: las cuentas por cobrar hacen parte de la auditoria realizda, es decir
que auditor examina las cuentas y esta en su derecho de hacer un juicio.
Se hacen por parte separada

Certification Exam Question 4.5

An examination of a financial forecast is a professional service that involves:
(A) Compiling or assembling a financial forecast that is based on managements
(B) Limiting the distribution of the accountants report to management and the board
of directors.
(C) Assuming responsibility to update management on key events for one year after
the reports date.
(D) Evaluating the preparation of a financial forecast and the support underlying
managements assumptions.

Sustentacion: el pronostico financiero es realizado por un profecional de la

contaduria publica y teniendo conociemento sobre el tema para pobre brindar el
major apoyo a la administracion.