The Assurance Services Market

Chapter 1
The Assurance
Services Market
Copyright © 2014 Pearson Education

Describe auditing.
Distinguish between auditing and

accounting.
Explain the importance of auditing in
reducing information risk.
List the causes of information risk, and
explain how this risk can be reduced.
1-2
Describe assurance services and
distinguish audit services from other
assurance and nonassurance services
provided by CPAs.
Differentiate the three main types of
audits.
Identify the primary types of auditors.
Describe the requirements for becoming a

CPA.
1-3
1
Describe auditing.
1-4
Nature of Auditing
tích luỹ đánh giá
Auditing is the accumulation and evaluation
bằng chứng xác định
of evidence about information
mức độ tương ứng
to determine
and report on the degree of correspondence
tiêu chí
between the information and established criteria.
có thẩm quyền
Auditing should be done by a competent,

independent person.
1-5
To do an audit, there must be information in a
verifiable form and some standards (criteria)
by which the auditor can evaluate the information.
Criteria
FASB IASB
1-6
Evidence is any information used by the auditor
to determinecó được
whether the information being
phù hợp
audited is stated in accordance with the
established criteria.
Transaction
data Written and
electronic Observations
Communications
Client with outsiders
Testimony
1-7
độc lập
năng lực phán quyết
Judgment and
Competence
Experience
không phụ thuộc
Independence
Evaluation đánh giá bằng chứng

of Evidence
Proper thích hợp
Conclusion
1-8
To the Board of Directors and Stockholders of
ABC Corporation and Subsidiaries
Anywhere, USA
We have audited the accompanying consolidated balance sheets of ABC Corporation and Subsidiaries (the “Company”) as of
December 31, 2010 and December 31, 2009, and the related consolidated statements of income, stockholders’ equity, and
cash flows for each of the three years in the period ended December 31, 2010. Our audits also included the financial
statement schedule listed in the Index at Item 15. These financial statements and financial statement schedule are the
responsibility of the Company’s management. Our responsibility is to express an opinion on the financial statements and
financial statement schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of ABC
Corporation and Subsidiaries as of December 31, 2010 and December 31, 2009, and the results of their operations and their
cash flows for each of the three years in the period ended December 31, 2010, in conformity with accounting principles
generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered
in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the
information set forth therein.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
the Company’s internal control over financial reporting as of December 31, 2010, based on the criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our
report dated February 28, 2011, expressed an unqualified opinion on the Company’s internal control over financial reporting.
INTERNATIONAL CPA FIRM LLP

Anywhere, USA
February 28, 2011
truyền đạt kết qua

The final step communicates the findings to users.
1-9
Giải thích
1-10
2
phân biệt
Distinguish between auditing

and accounting.
1-11
ghi chép phân loại
Accounting is the recording, classifying,
tổng hợp
and summarizing of economic events
for the purpose of providing financial
information used in decision making.
xác định
Auditing is determining whether

phù hợp
recorded
ảnh hưởng
information properly
reflects the economic events that
occurred during the accounting period.
1-12
3
Giải thích
Explain the importance of

auditing
in reducing information risk.
1-13
điều khiển
Demand Driver Information risk
đáng kể
Auditing can have a significant effect
on information risk.
What is meant by “Information risk”?
1-14
4
List the causes of information
risk, and explain how this
risk can be reduced.
1-15
sự xa hôi của thông tin
➢ Remoteness of information
Thành kiến động cơ
➢ Biases and motives of the provider

Quy mô lớn
➢ Voluminous data
Phức tạp
➢ Complex exchange transactions
1-16
➢ User verifies information
➢ User shares information risk with management
➢ Audited financial statements are provided
1-17
Client or audit Auditor issues
committee hires report relied
auditor
Auditor upon by users to reduce
information risk
Provides capital
External
Client
Users
Client provides financial
statements to users
1-18
5
Describe assurance services and
phan biệt
distinguish audit services from other

assurance and non-assurance services
provided by CPAs.
1-19
độc lập
An independent professional service
Can be performed by CPAs or by a variety

of other professionals
1-20
Chứng thực
➢A type of assurance service

Cơ sở dẫn liệu
➢CPA reports on the reliability of an assertion

confirmation
➢That is the made by another party.
1-21
Five soát xét bctc
Categories
1. Audit 3. Review
Historical
Financial
Statements
Kiểm soát nội bộ IT audit
2. Internal
Control over 4. Information
Financial 5. Other
Reporting
Technology
1-22
WebTrust and SysTrust also meet the
criteria of attestation service
1-23
Most of the other assurance services that CPAs
provide do not meet the formal definition
định nghĩa
of attestation services.
The CPA is not required to issue a written report.
Thesự tinassurance
cậy
does not have to be about the
khẳng định
reliability of another party’s assertion about
tuân thủ
compliance with specified criteria.
1-24
đột biến
Global interest has triggered a surge in reports.
95% of the Global Fortune 250 released

environmental, social, and governance data.
trình bày báo cáo đôc lập tích hợp

Presented in standalone reports or integrated
into annual financial reports.
1-25
tích luỹ phân phối
Assess risks of accumulation, distribution,

lưu trữ
and storage of digital information…
đánh giá rủi ro bảo mật và các biện pháp kiểm soát
including liên quan đối với dữ liệu và thông tin khác được lưu trữ
dưới dạng điện tử, bao gồm tính phù hợp của việc sao
lưu và lưu trữ bên ngoài cơ sở.
assessing security risks and related

controls over data and other information
stored electronically, including the
adequacy of backup and off-site storage.
1-26
➢ Controls over and risks related to investments
tuân thủ thoả thuận
➢ Compliance with entertainment royalty agreements
➢ ISO 9000 certifications

tính trách nhiệm tinh bền vững
➢ Corporate responsibility and sustainability
1-27
ghi sổ sách
genenate recommendations
for management
Kiểm soát là quy trình bao gồm cả việc kiểm tra
Think or check form kiểm và đưa ra hành động
1-28
Kiểm tra chỉ là xem xét sai đúng sai
6
Differentiate the three main types
of audits.
1-29
purpose
➢ Operational Hoạt động
➢ Compliance Tuân thủ
➢ Financial Statement BCTC
1-30
fraudulent: gian lận
Ví dụ phòng ban bán hàng

thông tin: report about quantity and revenue sale prices
tiêu chuẩn: theo công ty quy định (document regulation of price,
discount and return policy.
Evaluate computerized payroll system

Example
for efficiency and effectiveness
Number of records processed, costs of
Information
the department, and number of errors
Established Company standards for efficiency and
Criteria effectiveness in payroll department
Available Error reports, payroll records, and
Evidence payroll processing costs
1-31
31
Đảm bảo tuân thủ các yêu cầu của sàn giao dịch chứng khoán
kiểm tra các thông lệ của đợn vị liên quan
thông tư, quyết định về hoạt động đăng ký giao dịch, quản lý đăng ký
giao dịch và giao dịch chứng khoán (TT120)
báo cáo về các giao dịch
Determine whether bank requirements

Example
for loan continuation have been met
Information Company records
Established
Loan agreement provisions
Criteria
Available Financial statements and
Evidence calculations by the auditor
32
Annual audit of Boeing’s financial
Example
statements
Information Boeing's financial statements
Established Generally accepted accounting

Criteria principles
Available Documents, records, and outside
Evidence sources of evidence
1-33
Extensible Business Reporting Language
Enables sorting and comparing of financial data
Public companies required to provide interactive

financial statement data
1-34
7
Identify the primary types of
auditors.
1-35
Theo chủ thể
➢ Certified public accounting firms
➢ Governmental accountability office auditors
➢ Internal Revenue agents Không có ở VN
➢ Internal auditors
1-36
8
Describe the requirements
for becoming a CPA.
1-37
➢ Educational requirement
➢ Uniform CPA examination requirement
➢ Experience requirement
1-38
Financial
Auditing Accounting
and And
Attestation Reporting
Business
Environment
Regulation
and
Concepts
1-39
purpose
1-40
41
Copyright
All rights reserved. No part of this publication may be reproduced,

stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
42

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Chapter 1

Copyright © 2014 Pearson Education

Distinguish between auditing and

Describe the requirements for becoming a

Auditing should be done by a competent,

năng lực phán quyết

Evaluation đánh giá bằng chứng

Proper thích hợp

INTERNATIONAL CPA FIRM LLP

truyền đạt kết qua

Distinguish between auditing

Auditing is determining whether

Explain the importance of

Demand Driver Information risk

What is meant by “Information risk”?

➢ Biases and motives of the provider

➢ Complex exchange transactions

➢ User shares information risk with management

➢ Audited financial statements are provided

distinguish audit services from other

An independent professional service

Can be performed by CPAs or by a variety

➢A type of assurance service

➢CPA reports on the reliability of an assertion

➢That is the made by another party.

The CPA is not required to issue a written report.

95% of the Global Fortune 250 released

trình bày báo cáo đôc lập tích hợp

Assess risks of accumulation, distribution,

assessing security risks and related

➢ Compliance with entertainment royalty agreements

➢ ISO 9000 certifications

➢ Corporate responsibility and sustainability

➢ Operational Hoạt động

➢ Compliance Tuân thủ

➢ Financial Statement BCTC

Ví dụ phòng ban bán hàng

Evaluate computerized payroll system

Determine whether bank requirements

Information Company records

Information Boeing's financial statements

Established Generally accepted accounting

Enables sorting and comparing of financial data

Public companies required to provide interactive

➢ Certified public accounting firms

➢ Governmental accountability office auditors

➢ Internal Revenue agents Không có ở VN

➢ Uniform CPA examination requirement

All rights reserved. No part of this publication may be reproduced,

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