Summary Operational Auditing Y2Q4
Chapter 1: The Role of the public Accountant in the American economy
Public Accountants (RA’s, CPA’s) can tell us whether the information we receive from company’s is a
fair picture of what really is going on. To provide credibility to (financial) information.
Assurance services = the broad range of information enhancement services that are provided by
certified public accountants (CPAs).
Accountant MUST be independent.
Two types:
1. Increase reliability of information
2. Putting information into a form or context that facilitates decision making.
Types of services:
- Assurance services
o Attestation services = provide assurance to its reliability
Example: Audits of Financial Statements, Examinations of Internal Control
Attest engagement = a practitioner is engaged to issue or does issue an
examination, a review, or an agreed-upon procedures report on subject matter or an
assertion about subject matter that is the responsibility of another party.
- Non Assurance Services
o Tax Services
o Management Consulting Services
Suitable criteria:
- Standrads established or developed by
groups of experts
Example: Internal control audit – Standards
established by a committee of experts on
internal control
Example: Financial statement audit – standards
are GAAP. For a financial statement audit
suitable criteria are referred to as the applicable
financial reporting framework
Chapter 1: The Role of the public Accountant in the American economy
Public Accountants (RA’s, CPA’s) can tell us whether the information we receive from company’s is a
fair picture of what really is going on. To provide credibility to (financial) information.
Assurance services = the broad range of information enhancement services that are provided by
certified public accountants (CPAs).
Accountant MUST be independent.
Two types:
1. Increase reliability of information
2. Putting information into a form or context that facilitates decision making.
Types of services:
- Assurance services
o Attestation services = provide assurance to its reliability
Example: Audits of Financial Statements, Examinations of Internal Control
Attest engagement = a practitioner is engaged to issue or does issue an
examination, a review, or an agreed-upon procedures report on subject matter or an
assertion about subject matter that is the responsibility of another party.
- Non Assurance Services
o Tax Services
o Management Consulting Services
Suitable criteria:
- Standrads established or developed by
groups of experts
Example: Internal control audit – Standards
established by a committee of experts on
internal control
Example: Financial statement audit – standards
are GAAP. For a financial statement audit
suitable criteria are referred to as the applicable
financial reporting framework
