SERVICES OF A

PROFESSIONAL
ACCOUNTANT
In Public Practice
 ACCORDING TO CABRERA, 2015

• The ff. are the professional services of a professional accountant

• A. Assurance Services
• 1. Independent/Financial Statement Audit
• 2. Reviews
• 3. Other Assurance Services , e.g. Business Performance Service
• B. Non-assurance Services
• 1. Agreed-upon procedure
• 2. Compilation
• 3. Tax
• 4. Management Consultancy Advisory Services
• 5. Accounting and Data Processing
• 6. Other Non-assurance services, e.g. Information Technology Services
• Professional Accountant is an individual who holds a valid certificate issued by the Board of
Accountancy (BOA), authorized to use the title Certified Public Accountant or C.P.A and may
belong to any of the four sectors : Public Practice, Commerce and Industry, Government ,
Education/Academe
 ASSURANCE SERVICES IN THE CONTEXT
OF PHIL. FRAMEWORK FOR
• Assurance Engagements (2006), refers to the auditor’s satisfaction as to the reliability of an
assertion being made by one party for use by another party.
• To provide such assurance, the auditor assesses the evidence collected as a result of procedures
conducted and expresses a conclusion.
• The degree of satisfaction achieved and, therefore, the level of assurance, which may be
provided is determined by the procedures performed and their results.
 EXAMPLES

• 1. In a financial statement audit, the financial statement (subject matter) is evaluated whether it
is in accordance with the criteria (PAS and PFRS), whether they are fairly stated (recognition,
measurement, presentation and disclosure)
• 2, An assertion about the effectiveness of internal control (outcome), applying a framework for
evaluating the effectiveness of internal control.
 ASSURANCE SERVICES

• 1. Independent/Financial Statements Audit

• To provide a high level of assurance that the financial statements are free from material
misstatements
• 2. Review of Financial Statements
• According to Phil. Standard on Review Engagement (PSRE 2400 and 2410)
• Review involves limited investigation of much narrower scope than an audit for the purpose of
providing limited (negative)assurance that the financial statements presented are in accordance
with the PFRS
 ELEMENTS OF AN ASSURANCE
ENGAGEMENT
• A. A three-party relationship
• 1. Practitioner/Professional Accountant
• 2. Responsible Party/Client/Management
• 3. Intended Users
• B. An appropriate Subject Matter
• C. Suitable Criteria/PFRS
• D. Sufficient, Appropriate Evidence
• E. Written Assurance Report, example: Auditor’s Report
 SUFFICIENCY OF EVIDENCE

• Sufficiency means adequacy (Quantity of evidence to render an opinion)

• Appropriateness ( Quality/Relevance), the evidence is relevant to the objective to be able to
express an opinion, ability to withstand scrutiny

• Assurance Report – written report containing a conclusion of the engagement

 NON-ASSURANCE ENGAGEMENTS

• 1. Agreed-upon procedures – specific engagement , e.g. Audit of Receivables

• 2. Compilation of FS , preparation of FS
• 3. Preparation of Tax Returns
• 4. Management Consulting
• 5. Other Advisory Services