Examples of Auditing, Attestation, and Assurance Services

Examples of Auditing, Attestation, and Assurance Services.

Audit reports are produced throughout a process of an audit, and along with this include other services such as assurance, and attestation. According to “Figure 20-18  Comparison of Attestation, Assurance, and Consulting Services” the attestation provides reliable information in a written conclusion from the CPA who is preforming the audit, and the assurance is written from the CPA preforming the audit to help communicate better information to the decision makers to help them make better decisions. After the audit is performed with all the included services consulting the information, and it being processed by the decision makers is a necessary step to ensure the audit is complete with action taken. As we now understand the process of auditing a deeper look is taken towards the users of the services.

Users of Auditing, Attestation, and Assurance Services

        Different users of audit reports request a specific type of audit depending on their needs. Investors, creditors, and the federal governments are more likely to request a financial statement audit and an audit report on an organization’s internal control. A financial statement audit evaluates the financial position, results of operations and cash flows of an organization. Organizations audited include those whose securities are traded on the New York Stock Exchange, a public company or local governments receiving $500,000 or more per year. Financial statement audits provide assurance about the credibility of critical information used to make investment and crediting decisions. The audit report on internal control helps ensure that an organization has established adequate controls over financial reporting for accountability and accurate reporting. Users, such as management and board of directors are more likely to request a compliance audit or operational audit. A compliance audit looks at an organizations adherence to policies and regulations set by management or government. An operational audit analyzes operational and performance data to determine if the company has met management’s objectives. The audit report can help guide management determine what if any changes need to be made in order for the organization to meet its objectives. All users of the different audit reports can request attest services from a CPA firm to test and examine the company’s financial statements audited. Assurance services include CPA Risk Advisory and CPA Performance View. These assurances provide relevant information in order to the assist the hiring company in decision-making. For example, an organization can hire a CPA firm to verify the calculations on the organization’s mortgage website.