Question

Compare the attestation services provided by independent professionals with other assurance services provided by CPAs. Next, discuss at least two (2) goals of each service and how the service contributes to decreasing the risk of reporting errors or misstatements in financial statements. Provide the underlying principles supporting your response.

• Evaluate the effectiveness of the current quality control standards and practices in the accounting profession. Next, identify at least one (1) standard or practice that merits improvement and the corresponding improvements recommended.

Answer 1

Comparing Attestation and Assurance Services:

Attestation Services:

Attest is an engagement that requires independence. This includes audits, reviews, compilations, attestation and assurance services. Attestation is an engagement where a written report is issued on something other than historical financial statements

Assurance Services:

Assurance services are a type of professional service usually provided by CPAs. Assurance services can include a review of any financial document or transaction, such as a loan, contract or financial website.

Goals:

Attestation Services:

obtain reasonable assurance about whether, in all material respects, based on suitable criteria

• management's description of the service organization's system fairly presents the system that was designed and implemented throughout the specified period;
• the controls related to the control objectives stated in management's description of the service organization's system were suitably designed throughout the specified period;
• the controls operated effectively to provide reasonable assurance that the control objectives stated in management's description of the service organization's system were achieved throughout the specified period.

Assurance Services:

• Helps the company’s reputation that it is presenting truthful information regarding their data, internal controls and systems

• Assists companies to make the best decisions for their operations to promote financial growth

• Increase credibility in the provided information that can lead to lower transaction costs and better resource allocations