Audit1

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 & nde'enden$ nde'enden $ 'r()ess(na* servces n +,c, a 'rac$$(ner ssues a +r$$en c(##unca$(n $,a$ e'resses a c(nc*us(n des"ned $( en,ance $,e de"ree () c(n)dence () $,e n$end n$ended ed users users ($,er ($,er $,an $,an $,e res'(n res'(ns s.*e .*e 'ar$ 'ar$/ / a.(u$ a.(u$ $,e (u$c(# (u$c(#e e () $,e $,e eva*ua eva*ua$( $(n n (r #easure#en$ () a su.0ec$ #a$$er a"ans$ cr$era  & an en"a"e#en$ n +,c, a 'rac$$(ner e'resses a c(nc*us(n des"ned $( en,ance $,e de"ree () c(n)dence () $,e n$ended users ($,er $,an $,e res'(ns.*e 'ar$/ a.(u$ $,e (u$c(#e () $,e eva*ua$(n (r #easure#en$ () a su.0ec$ #a$$er a"ans$ cr$era  Assurance servces #'r(ve  #'r(ve $,e 1ua*$/ () n)(r#a$(n )(r decs(n-#an" decs (n-#an"  re)ers $( $,e 'rac$$(ners sa$s)ac$(n as $( $,e re*a.*$/ () an asser$(n • .en" #ade ./ (ne 'ar$/ )(r use ./ an($,er 'ar$/5 $ s $,e de"ree () cer$an$/ $,e 'rac$$(ner ,as a$$aned and +s,es $( c(nve/ $( n$ended users Inde'endence s re1ured +,enever a 'r()ess(na* acc(un$an$ 'er)(r#s assurance • servces •

 Assurance en"a"e#en$s 'er)(r#ed ./ 'r()ess(na* acc(un$an$s are n$ended $( en,ance $,e cred.*$/ () n)(r#a$(n a.(u$ $,e (u$c(#e () $,e eva*ua$(n (r #easure#en$ () a su.0ec$ #a$$er a"ans$ cr$era6 $,ere./ #'r(vn" $,e *e*,((d $,a$ $,e n)(r#a$(n +** #ee$ $,e needs needs () () an n$ende n$ended d user user Assurance en"a"e#en$s en,ance $,e de"ree () c(n)dence () $,e n$ended user .ecause $,e 1ua*$/ () n)(r#a$(n )(r decs(n #an" s #'r(ved

 Acc(rdn" $( $,e 7,*''ne Fra#e+(r )(r Assurance En"a"e#en$s6 an assurance en"a"e#en$ s c(nduc$ed%  $,a$ $,e su.0ec$ #a$$er c(n)(r#s n a** #a$era* res'ec$s +$, a. T( 'r(vde a den$)ed su$a.*e cr$era5 (r  $,a$ $,e su.0ec$ #a$$er s '*aus.*e n $,e crcu#s$ances  b. T( 'r(vde a

1.

 & en"a"e# en$s $,a$ 'r(vde ,",6 , ",6 .u$ n($ a.s(*u$e6 a.s( *u$e6 *eve* *ev e* () assurance  A*s( ca**ed ca** ed • T,e (.0ec$ve () a reas(na.*e assurance en"a"e#en$ s a reduc$(n n assurance en"a"e#en$ • rs2  $( an acce acce'$ '$a. a.*/ */ *(+ *(+ *eve *eve** as $,e $,e .as .asss )(r )(r a '(s '(s$ $ve ve )(r# )(r# () e'r e'res ess s(n (n () $,e $,e 'rac$$(ners 'rac$$(ners c(nc*us(n Reas(n Reas(na.* a.*e e assura assurance nce s ac,e ac,eved ved ) assura assurance nce en"a" en"a"e#e e#en$ n$ rs rs s red reduce uced d $( an acce'$a.*/ acce'$a.*/ *(+ *eve* 8c*(se $( 9er(: F(r assuranc assurance e en"a"e#e en"a"e#en$s n$s re"ardn re"ardn" " ,s$(rc ,s$(rca* a* )nanca )nanca** n)(r#a$ n)(r#a$(n (n n 'ar$cu* 'ar$cu*ar6 ar6 • reas(na.*e assurance en"a"e#en$s are ca**ed  An aud$ en"a"e#en$ s an assurance en"a"e#en$ $( 'r(vde a ,", *eve* () assurance $,a$ $,e )nanca* s$a$e#en$s are )ree () #a$era* #ss$a$e#en$ T,s ,", *eve* () assurance s e'ressed '(s$ve*/ n $,e aud$ re'(r$ as ;reas(na.*e assurance< A.s(*u$e assurance s n($ a$$ana.*e% a$$ana.*e% • In assurance en"a"e#en$s6 a.s(*u$e assurance s "enera**/ n($ a$$ana.*e .ecause () suc, )ac$(rs as% → Use () 0ud"#en$ → Use () $es$n" → In,eren$ *#$a$(ns () n$erna* c(n$r(* 'rac$$(ner s 'ersuasve ra$,er $,an c(nc*usve → M(s$ evdence ava*a.*e $( $,e 'rac$$(ner → In s(#e cases6 $,e c,arac$ers$cs () $,e su.0ec$ #a$$er •

 &  en"a"e#en$s  en"a"e#en$s $,a$ 'r(vde (n*/ a ;#(dera$e< (r ;*#$ed< *eve*

2.

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T,e (.0ec$ve () a *#$ed assurance en"a"e#en$ s a reduc$(n n assurance en"a"e#en$ rs2 $( an acce'$a.*e *eve* as $,e .ass )(r a ne"a$ve )(r# () e'ress(n () $,e 'rac$$(ners c(nc*us(n T,us6 $,e rs n *#$ed assurance en"a"e#en$ s "rea$er $,an )(r a reas(na.*e assurance en"a"e#en$ M(dera$e assurance s ac,eved ) assurance en"a"e#en$ rs s reduced $( an acce'$a.*e *eve* F(r assurance en"a"e#en$s re"ardn" ,s$(rca* )nanca* n)(r#a$(n n 'ar$cu*ar6 • *#$ed assurance en"a"e#en$s are ca**ed  •

 s $,e rs $,a$ $,e 'rac$$(ner e'resses an na''r('ra$e c(nc*us(n +,en $,e su.0ec$ #a$$er n)(r#a$(n s #a$era**/ #ss$a$ed •

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$,e rs $,a$ $,e su.0ec$ #a$$er s #a$era**/ #ss$a$ed  & $,e susce'$.*$/ () $,e su.0ec$ #a$$er n)(r#a$(n $( a #a$era* a. #ss$a$e#en$6 assu#n" $,a$ $,ere are n( re*a$ed c(n$r(*s & $,e rs $,a$ a #a$era* #ss$a$e#en$ $,a$ c(u*d (ccur +** n($ .e  b. 'reven$ed6 (r de$ec$ed and c(rrec$ed6 (n a $#e*/ .ass ./ re*a$ed n$erna* c(n$r(*s  & $,e rs $,a$ $,e 'rac$$(ner +** n($ de$ec$ a #a$era* #ss$a$e#en$ $,a$ 2. es$s 1.

1.

 & eva*ua$(n (r #easure#en$ () $,e su.0ec$ #a$$er s 'er)(r#ed ./ $,e res'(ns.*e 'ar$/6 and $,e su.0ec$ #a$$er n)(r#a$(n s n $,e )(r# () an asser$(n ./ $,e res'(ns.*e 'ar$/ $,a$ s #ade ava*a.*e $( $,e n$eres$ed users  Asser$(n-.ased en"a"e#en$s are a*s( n(+n as • Ea#'*es () asser$(n-.ased en"a"e#en$s% • a.  Aud$ en"a"e#en$s . Reve+ en"a"e#en$s In an asser$(n-.ased en"a"e#en$6 $,e 'rac$$(ners c(nc*us(n can .e +(rded n $er#s () $,e res'(ns.*e 'ar$/s asser$(n F(r ea#'*e% ;In (ur ('n(n $,e res'(ns.*e 'ar$/4s asser$(n $,a$ n$erna* c(n$r(* s e))ec$ve6 n a** #a$era* res 'ec$s6 .ased (n =Y> cr$era6 s )ar*/ s$a$ed< 

2.

& $,e 'rac$$(ner e$,er drec$*/ 'er)(r#s $,e eva*ua$(n (r #easure#en$ () $,e su.0ec$ #a$$er6 (r (.$ans a re'resen$a$(n )r(# $,e res'(ns.*e 'ar$/ $,a$ ,as 'er)(r#ed $,e eva*ua$(n (r #easure#en$ $,a$ s n($ ava*a.*e $( $,e n$ended users In a drec$ re'(r$n" en"a"e#en$6 $,e 'rac$$(ners c(nc*us(n s +(rded drec$*/ n $er#s () $,e su.0ec$ #a$$er and $,e cr$era F(r ea#'*e% ;In (ur ('n(n n$erna* c(n$r(* s e))ec$ve6 n a** #a$era* res'ec$s6 .ased (n =Y> cr$era< 

En"a"e#en$s $( re'(r$ (n a .r(ad ran"e () su.0ec$ #a$$ers c(vern" )nanca* and n(n-)nanca* n)(r#a$(n  b.  A$$es$ and drec$ re'(r$n" en"a"e#en$s c. En"a"e#en$s $( re'(r$ n$erna**/ and e$erna**/6 and d. En"a"e#en$s n $,e 'rva$e and 'u.*c sec$(r a.

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3 4 a  b. c.

d e

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C7A @e. Trus$ Servce In)(r#a$(n S/s$e#s Re*a.*$/

On*/ +,ere $,e 'rac$$(ners n(+*ed"e () $,e en"a"e#en$ crcu#s$ances ndca$es $,a$%  Re*evan$ e$,ca* re1ure#en$s6 suc, as nde'endence and 'r()ess(na* c(#'e$ence +** .e sa$s)ed5 and 2 T,e assurance en"a"e#en$ e,.$s a** () $,e )(**(+n" c,arac$ers$cs% a T,e su.0ec$ #a$$er s a''r('ra$e  b. T,e cr$era $( .e used are su$a.*e and are ava*a.*e $( $,e n$ended users c. T,e 'rac$$(ner ,as access $( su))cen$ a''r('ra$e evdence $( su''(r$ $,e 'rac$$(ners c(nc*us(n5 d. T,e 'rac$$(ners c(nc*us(n6 n $,e )(r# a''r('ra$e $( e$,er a reas(na.*e assurance en"a"e#en$ (r a *#$ed assurance en"a"e#en$6 s $( .e c(n$aned n a +r$$en re'(r$6 and e T,e 'rac$$(ner s sa$s)ed $,a$ $,ere s a ra$(na* 'ur'(se )(r $,e en"a"e#en$

N($ a** en"a"e#en$s 'er)(r#ed ./ 'rac$$(ners are assurance en"a"e#en$s An assurance en"a"e#en$ #us$ ,ave $,e )(**(+n" e*e#en$s%  T,ree 'ar$/ re*a$(ns,' 8nv(*vn" a 'rac$$(ner6 a res'(ns.*e 'ar$/ and n$ended users: 2 A''r('ra$e su.0ec$ #a$$er 3 Su$a.*e cr$era 4 Su))cen$ a''r('ra$e evdence 5. @r$$en assurance re'(r$ n $,e )(r# a''r('ra$e $( a reas(na.*e assurance en"a"e#en$ (r a *#$ed assurance en"a"e#en$

a.

 & C7A n 'u.*c 'rac$ce +,( 'er)(r#s $,e assurance en"a"e#en$ T,e $er# 'rac$$(ner s .r(ader $,an $,e $er# ;aud$(r< as used n 'r()ess(na* s$andards6 +,c, (n*/ re)ers $( 'rac$$(ner 'er)(r#n" aud$ (r reve+ en"a"e#en$s +$, res'ec$ $( ,s$(rca* )nanca* n)(r#a$(n

 b.

 & 'ers(n!s +,( s res'(ns.*e )(r $,e su.0ec$ #a$$er (r $,e asser$(n 8su.0ec$ #a$$er n)(r#a$(n: F(r ea#'*e6 an en$$/s #ana"e#en$ s res'(ns.*e )(r $,e 're'ara$(n and 'resen$a$(n () )nanca* s$a$e#en$s (r $,e es$a.*s,#en$ and #'*e#en$a$(n () n$erna* c(n$r(*

c.

 & 'ers(n6 'ers(ns (r c*ass () 'ers(ns )(r +,(# $,e 'rac$$(ner 're'ares $,e assurance re'(r$5 $,e/ are $,e users $( +,(# $,e 'rac$$(ner usua**/ addresses $,e re'(r$ Res'(ns.*e 'ar$/ and n$ended user% T,e res'(ns.*e 'ar$/ and $,e n$ended users #a/ .e )r(# d))eren$ en$$es (r • $,e sa#e en$$/ T,e 'rac$$(ner #a/ .e en"a"ed ./ $,e res'(ns.*e 'ar$/ (r $,e n$ended user • T,e res'(ns.*e 'ar$/ can .e (ne () $,e n$ended users6 .u$ n($ $,e (n*/ (ne • @,enever 'rac$ca*6 $,e assurance re'(r$ s addressed $( a** $,e n$ended users6 • .u$ n s(#e cases $,ere #a/ .e ($,er n$ended users In cases +,ere $,e C7A #a/ n($ .e a.*e $( den$)/ a** n$ended users6 n$ended users #a/ .e *#$ed $( #a0(r s$(c,(*ders +$, s"n)can$ and c(##(n n$eres$s In s(#e crcu#s$ances6 $,e n$ended user #a/ .e es$a.*s,ed ./ *a+ • T,e res'(ns.*e 'ar$/ #a/ a*s( .e (ne () $,e n$ended users • T,e n$ended user #a/ .e es$a.*s,ed ./ a"ree#en$ .e$+een $,e 'rac$$(ner • and res'(ns.*e 'ar$/ (r $,(se en"a"n" (r e#'*(/n" $,e 'rac$$(ner

 re)ers $( $,e n)(r#a$(n $( .e eva*ua$ed (r #easured a"ans$ $,e cr$era  #eans $,e (u$c(#e () $,e eva*ua$(n (r #easure#en$ () a su.0ec$ #a$$er Su.0ec$ #a$$er n an aud$ () )nanca* s$a$e#en$s% Su.0ec$ #a$$er nc*udes $,e )nanca* '(s$(n6 )nanca* 'er)(r#ance and cas, )*(+s () $,e • en$$/

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Re1ure#en$s )(r su.0ec$ #a$$er $( .e c(nsdered a''r('ra$e% a. Iden$)a.*e  b. Ca'a.*e () c(nss$en$ eva*ua$(n and #easure#en$ a"ans$ su$a.*e cr$era c. In $,e )(r# $,a$ can .e su.0ec$ed $( 'r(cedures )(r "a$,ern" evdence $( su''(r$ $,a$ eva*ua$(n (r #easure#en$ F(r#s () su.0ec$ #a$$er () an assurance en"a"e#en$% 8)(r ea#'*e6 ,s$(rca* (r 'r(s'ec$ve )nanca* '(s$(n6 )nanca* 'er)(r#ance and cas, )*(+s: )(r +,c, $,e su.0ec$ #a$$er n)(r#a$(n #a/ .e $,e rec("n$(n6 #easure#en$6 'resen$a$(n and dsc*(sure re'resen$ed n $,e )nanca* s$a$e#en$s   8)(r ea#'*e6 'er)(r#ance ndca$(rs () an 2. en$$/: )(r +,c, $,e su.0ec$ #a$$er n)(r#a$(n #a/ .e e/ ndca$(rs () e))cenc/ and e))ec$veness  8)(r ea#'*e6 ca'ac$/ () a )ac*$/: )(r +,c, $,e su.0ec$ #a$$er 3. n)(r#a$(n #a/ .e a s'ec)ca$(ns d(cu#en$  8)(r ea#'*e6 en$$/s n$erna* c(n$r(* (r IT s/s$e#: )(r +,c, $,e 4. su.0ec$ #a$$er n)(r#a$(n #a/ .e an asser$(n a.(u$ e))ec$veness  8)(r ea#'*e6 c(r'(ra$e "(vernance6 c(#'*ance +$, re"u*a$(n6 ,u#an res(urce 5. 'rac$ces: )(r +,c, $,e su.0ec$ #a$$er n)(r#a$(n #a/ .e a s$a$e#en$ () c(#'*ance (r a s$a$e#en$ () e))ec$veness 1.

re)er $( $,e s$andard (r .enc,#ar used $( eva*ua$e (r #easure $,e su.0ec$ #a$$er () an assurance en"a"e#en$6 nc*udn"6 +,ere re*evan$6 .enc,#ars )(r 'resen$a$(n and dsc*(sure @$,(u$ )ra#e () re)erence 'r(vded ./ su$a.*e cr$era6 an/ c(nc*us(n s ('en $( ndvdua* n$er're$a$(n and #sunders$andn" Fve c,arac$ers$cs () su$a.*e cr$era% a & re*evan$ cr$era c(n$r.u$e $( c(nc*us(ns $,a$ asss$ decs(n-#an" ./ $,e n$ended users  & cr$era are su))cen$*/ c(#'*e$e +,en re*evan$ )ac$(rs $,a$ c(u*d a))ec$ $,e . c(nc*us(ns n $,e c(n$e$ () $,e en"a"e#en$ crcu#s$ances are n($ (#$$ed C(#'*e$e cr$era nc*ude6 +,ere re*evan$6 .enc,#ars )(r 'resen$a$(n and dsc*(sure c  & re*a.*e cr$era a**(+ reas(na.*/ c(nss$en$ eva*ua$(n (r #easure#en$ () $,e su.0ec$ #a$$er +,en used n s#*ar crcu#s$ances ./ s#*ar*/ 1ua*)ed 'rac$$(ners d  & neu$ra* cr$era c(n$r.u$e $( c(nc*us(ns $,a$ are )ree )r(# .as e  & unders$anda.*e cr$era c(n$r.u$e $( c(nc*us(ns $,a$ are c*ear6 c(#'re,ensve6 and n($ su.0ec$ $( s"n)can$*/ d))eren$ n$er're$a$(ns T+( $/'es () cr$era%  & are $,(se cr$era $,a$ are e#.(ded n *a+s (r re"u*a$(ns (r ssued ./ au$,(r9ed (r rec("n9ed .(des () e'er$s $,a$ )(**(+ a $rans'aren$ due 'r(cess Ea#'*es% & $,(se cr$era s'ec)ca**/ des"ned )(r $,e 'ur'(se () $,e 2. en"a"e#en$ 1.

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 An  s a $/'e () assurance servce n +,c, a 'rac$$(ner s en"a"ed $( ssue a +r$$en c(##unca$(n $,a$ e'resses a c(nc*us(n a.(u$ $,e re*a.*$/ () a +r$$en asser$(n $,a$ s $,e res'(ns.*$/ () an($,er 'ar$/ "enera**/ re)ers $( an e'er$Bs +r$$en c(##unca$(n () a c(nc*us(n a.(u$ $,e re*a.*$/ () s(#e(ne e*seBs asser$(ns T,e su.0ec$ #a$$er () a$$es$a$(n servces nc*ude% Fnanca* and n(n-)nanca* n na$ure • Fu$ure-(ren$ed )nanca* n)(r#a$(n 8suc, as $,e ea#na$(n () 'r(s'ec$ve )nanca* n)(r#a$(n: • Mana"e#en$Bs dscuss(n and ana*/ss • E))ec$veness () n$erna* c(n$r(* • C(#'*ance +$, s$a$u$(r/6 re"u*a$(r/6 and c(n$rac$ua* (.*"a$(ns •

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N($ a** en"a"e#en$s are assurance en"a"e#en$s O$,er en"a"e#en$s 'er)(r#ed ./ 'rac$$(ners $,a$ d( n($ #ee$ $,e de)n$(n () assurance en"a"e#en$ are c*ass)ed as (r servces are $,(se $,a$ d( n($ resu*$ n $,e 'rac$$(ners e'ress(n () a c(nc*us(n $,a$ 'r(vdes a *eve* () assurance6 +,e$,er ne"a$ve assurance (r ($,er )(r# () assurance T,e 'rac$$(ner d(es n($ c(nve/ $( $,e n$ended users an/ assurance as $( $,e re*a.*$/ () an asser$(n T,e 'rac$$(ners 'r#ar/ 'ur'(se )(r 'er)(r#n" n(n-assurance servces s $( 'r(vde advce and $ec,nca* asss$ance $,a$ +** ena.*e a c*en$ $( c(nduc$ $s .usness #(re e))ec$ve*/ Ea#'*es () n(n-assurance en"a"e#en$s%  Re*a$ed servces6 suc, as% a A"reed-u'(n 'r(cedures en"a"e#en$s6 and . C(#'*a$(ns () )nanca* (r ($,er n)(r#a$(n en"a"e#en$s 2 Ta servces 8suc, as $,e 're'ara$(n () $a re$urns +,ere n( c(nc*us(n c(nve/n" assurance s e'ressed: 3 C(nsu*$n" 8(r advs(r/: en"a"e#en$s6 suc, as #ana"e#en$ and $a c(nsu*$n"

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 A 'ervasve c,arac$ers$c () a C7As r(*e n a c(nsu*$n" servces en"a"e#en$ s $,a$ () .en" an  (n $,e use () n)(r#a$(n

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T( #'r(ve 1ua*$/ (r c(n$e$ () n)(r#a$(n ./ en,ancn" $s cred.*$/ 3 'ar$es Decs(n #aers and n)(r#a$(n $,e/ used )(r ('$#u# decs(ns In$ended $( #'r(ve decs(n #aers c(nd$(n (n*/ ndrec$*/ $,r(u", $,e use () ,",-1ua*$/ n)(r#a$(n Ma/ es$ .e$+een #ana"e#en$ and users () )nanca* s$a$e#en$s @r$$en re'(r$

1.  Aud$

() FS

2 Aud$ () n$erna* c(n$r(* (ver )nanca* re'(r$n"

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 Ea#na$( n () 'r(s'ec$ve FS 2 C7A rs advs(r/

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 A"reed-u'(n 'r(cedures 2 C(#'*a$(n () )nanca* (r ($,er n)(r#a$(n 3 7re'ara$(n () $a re$urns +,en n( c(nc*us(n s e'ressed 4 C(nsu*$n" (r advs(r/ servces% • Ta c(nsu*$n" • Mana"e#en$ c(nsu*$n" • O$,er advs(r/ servces

T,e .asc ds$nc$(n .e$+een aud$6 reve+ and re*a$ed servces s $,e *eve* () assurance 'r(vded ./ $,e aud$(r n $,e en"a"e#en$  re)ers $( $,e 'rac$$(ners sa$s)ac$(n as $( $,e re*a.*$/ () an asser$(n .en" #ade ./ (ne 'ar$/ )(r use ./ an($,er 'ar$/ T,e  s $,e de"ree () $,e 'rac$$(ners sa$s)ac$(n (r de"ree () cer$an$/ $,e 'rac$$(ner ,as a$$aned and +s,es $( c(nve/ $( n$ended users Suc, *eve* (r de"ree () assurance de'ends (n $,e 'r(cedures 'er)(r#ed and $,e evdence c(**ec$ed ./ $,e 'rac$$(ner En"a"e#en$s and *eve* () assurance%   T,e aud$(r 'r(vdes a reas(na.*e 8,",6 .u$ n($ a.s(*u$e: *eve* () assurance $,a$ $,e 1. n)(r#a$(n su.0ec$ $( aud$ s )ree () #a$era* #ss$a$e#en$ T,s s e'ressed '(s$ve*/ n $,e aud$ re'(r$ as  T,e aud$(r 'r(vdes a #(dera$e!*#$ed *eve* () assurance $,a$ $,e n)(r#a$(n su.0ec$ 2. $( reve+ s )ree () #a$era* #ss$a$e#en$ T,s s e'ressed n $,e )(r# () ne"a$ve assurance N( assurance s e'ressed T,e aud$(r s#'*/ 'r(vdes a re'(r$ () 3. $,e )ac$ua* )ndn"s Users () $,e re'(r$ assess )(r $,e#se*ves $,e 'r(cedures and )ndn"s re'(r$ed ./ $,e aud$(r and dra+ $,er (+n c(nc*us(ns )r(# $,e aud$(rBs +(r A*$,(u", $,e users () $,e c(#'*ed n)(r#a$(n derve s(#e .ene)$ )r(# $,e 4. acc(un$an$Bs nv(*ve#en$6 n( assurance s e'ressed n $,e re'(r$

 AT - Fundamentals of Assurance Engagements Page 7 

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O.0ec$ve 

C,arac$ers$cs 

T( e'ress ('n(n (n )arness () )nanca* s$a$e#en$

 Aud$ ('n(n en,ances $,e cred.*$/ () )nanca* s$a$e#en$s

T( re'(r$ +,e$,er an/$,n" ,as c(#e $( $,e aud$(rs a$$en$(n $,a$ causes ,# $( .e*eve $,a$ $,e )nanca* s$a$e#en$s are n($ )ar Su.s$an$a**/ *ess n sc('e () 'r(cedures $,an aud$

T( 'er)(r# aud$ 'r(cedures a"reed (n +$, $,e c*en$ and an/ a''r('ra$e $,rd 'ar$es den$)ed n $,e re'(r$ •

•

Evdence "a$,ern" 'r(cedures 

Rs assess#en$6 Tes$s () c(n$r(*s and Su.s$an$ve $es$s

Leve* () assurance 'r(vded ./ $,e C7A 

Reas(na.*e assurance 8H",6 .u$ n($ a.s(*u$e6 assurance:  Aud$ Re'(r$ c(n$ann" '(s$ve assurance  (n asser$(n  Aud$ s**s

Re'(r$ 'r(vded 

S2**s used ./ $,e aud$(r 

L#$ed $(% In1ur/5 and •  Ana*/$ca* • 'r(cedures 8T,e aud$(r (.$ans an unders$andn" () $,e en$$/ and $s envr(n#en$6 nc*udn" n$erna* c(n$r(*6 .u$ n( eva*ua$(n () n$erna* c(n$r(* s c(nduc$ed:

Rec'en$s () $,e re'(r$ #us$ )(r# $,er (+n c(nc*us(ns )r(# $,e re'(r$ Re'(r$ s res$rc$ed $( c(n$rac$n" 'ar$es

T( asss$ $,e c*en$ n )nanca* s$a$e#en$s 're'ara$(n ./ usn" acc(un$n" e'er$se as (''(sed $( aud$n" e'er$se

•

•

 Acc(un$n" e'er$se6 ra$,er $,an aud$n"6 s used Users derve s(#e .ene)$ .ecause $,e servce ,as .een 'er)(r#ed +$, due 'r()ess(na* s** and care

 As a"reed

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Reve+ Re'(r$ c(n$ann" ne"a$ve assurance (n asser$(n

Fac$ua* )ndn"s () 'r(cedures

C(#'*a$(n Re'(r$ +,c, den$)/ n)(r#a$(n c(#'*ed

Aud$ s**s

Aud$ s**s

Acc(un$n" s**s

T,e )(**(+n" are $,e )(r#s () 'r(n(unce#en$s () $,e Aud$n" and Assurance S$andards C(unc* 8AASC:%

a 7,*''ne S$andards (n Aud$n" 87SAs: . 7,*''ne S$andards (n Reve+ En"a"e#en$s 87SREs: c

7,*''ne S$andards (n Assurance En"a"e#en$s 87SAEs:

en"a"e#en$s en"a"e#en$s

 dea*n" +$, su.0ec$ #a$$ers ($,er $,an ,s$(rca* )nanca* n)(r#a$(n

 AT - Fundamentals of Assurance Engagements Page 8

7,*''ne Aud$n" 7rac$ce S$a$e#en$s 87A7Ss: 7,*''ne Reve+ En"a"e#en$ 7rac$ce S$a$e#en$s 87RE7Ss: 7,*''ne Assurance En"a"e#en$ 7rac$ce S$a$e#en$s 87AE7Ss:

Red Sirug

d 7,*''ne S$andards Servces 87SRSs:

(n

Re*a$ed

7,*''ne Re*a$ed Servces 7rac$ce S$a$e#en$s 87RS7Ss:

O$,er 'r(n(unce#en$s% e. 7,*''ne S$andards (n ua*$/ C(n$r(* 87SCs: & $( .e a''*ed )(r a** servces $,a$ )a** under $,e AASCs en"a"e#en$ s$andards6 na#e*/6 aud$6 reve+6 ($,er assurance6 and re*a$ed servces f. 7,*''ne Fra#e+(r )(r Assurance En"a"e#en$s & $( .e a''*ed )(r assurance en"a"e#en$s 7SAs6 7SREs6 7SAEs6 and 7SRSs are c(**ec$ve*/ re)erred $( as $,e AASCBs En"a"e#en$ S$andards T,e AASC ssues  $( 'r(vde n$er're$ve "udance and 'rac$ca* asss$ance $( 'rac$$(ners n #'*e#en$n" $,e En"a"e#en$ S$andards and $( 'r( #($e "((d 'rac$ce

T,e • • •

•

•

% De)nes and descr.es $,e e*e#en$s and (.0ec$ves () an assurance en"a"e#en$ Iden$)es en"a"e#en$s $( +,c, assurance en"a"e#en$ s$andards 87SAs6 7SREs6 and 7SAEs: a''*/ 7r(vdes )ra#e () re)erence )(r% a 7rac$$(ners +,( 'er)(r# assurance en"a"e#en$s 8suc, as aud$ and reve+ en"a"e#en$s: . O$,ers nv(*ved +$, assurance en"a"e#en$s 8suc, as $,e n$ended users and $,e res'(ns.*e 'ar$/:6 and c T,e In$erna$(na* Aud$n" and Assurance S$andards ?(ard 8IAAS?: n $s deve*('#en$ () assurance en"a"e#en$ s$andards +,c, +** .e ad('$ed ./ $,e AASC )(r a''*ca$(n n $,e 7,*''nes Ds$n"us,es assurance en"a"e#en$s and n(n-assurance en"a"e#en$s 8n(n-assurance en"a"e#en$s are n($ c(vered ./ $,e Fra#e+(r: Se$s (u$ c,arac$ers$cs $,a$ #us$ .e e,.$ed .e)(re a 'rac$$(ner can acce'$ an assurance en"a"e#en$

In add$(n $( $,e Fra#e+(r and 7SAs6 7SREs and 7SAEs6 'rac$$(ners +,( 'er)(r# assurance en"a"e#en$s are "(verned ./% T,e C(de () E$,cs )(r 7r()ess(na* Acc(un$an$s n $,e 7,*''nes • T,e 7,*''ne S$andards (n ua*$/ C(n$r(* 87SCs: • T,e Fra#e+(r d(es n($ $se*) es$a.*s, s$andards (r 'r(vde 'r(cedura* re1ure#en$s )(r $,e 'er)(r#ance () assurance en"a"e#en$s

a S,(u*d n($ use $,e +(rds ;assurance<6 ;aud$< (r ;reve+<   b. S,(u*d n($ #'*/ c(#'*ance +$, assurance en"a"e#en$ s$andards 87SAs6 7SREs (r 7SAEs: c. S,(u*d n($ nc*ude a s$a$e#en$ $,a$ #a/ .e #sn$er're$ed as assurance en"a"e#en$s A 'rac$$(ner s ass(ca$ed +$, )nanca* n)(r#a$(n +,en% a.  b.

T,e 'rac$$(ner re'(r$s (n n)(r#a$(n a.(u$ $,a$ su.0ec$ #a$$er6 $,a$ s6 $,e 'rac$$(ner a$$ac,es a re'(r$ $( $,a$ )nanca* n)(r#a$(n5 (r T,e 'rac$$(ner c(nsen$s $( $,e use () $,e ,s na#e n a 'r()ess(na* c(nnec$(n +$, $,a$ su.0ec$ #a$$er

I) $,e 'rac$$(ner s n($ ass(ca$ed n $,s #anner6 $,rd 'ar$es can assu#e n( res'(ns.*$/ () $,e 'rac$$(ner

I) $,e 'rac$$(ner *earns $,a$ a 'ar$/ s na''r('ra$e*/ usn" $,e 'rac$$(ners na#e n ass(ca$(n +$, a su.0ec$ #a$$er6 $,e 'rac$$(ner s,(u*d% Re1ure $,e ($,er 'ar$/ 8e6 #ana"e#en$: $( cease ass(ca$n" $,e 'rac$$(ner +$, $,e su.0ec$ • #a$$er C(nsder +,a$ ($,er s$e's #a/ .e needed6 suc, as n)(r#n" an/ n(+n $,rd 'ar$/ users () $,e • na''r('ra$e use () $,e 'rac$$(ners na#e See *e"a* advce •

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