Focus Notes -Philippine Standard on Auditing 120

Kristine R. Apale Focus Notes

AC516 12:00 – 3:00

PSA 120: FRAMEWORK OF PHILIPPINES STANDARDS STANDARDS ON AUDITING

Describe the ra!e"or# "ithin "hich $%As are issue& in relation to the ser'ices  peror!e& b( au&itors ISSUED BY: Auditing Standards and Practices Council (ASPC) PURPOSE:

Financial Reportin) Fra!e"or#  Financial Stat!nt" • •

$repare& an& presente& annually or annually or the wide range of users use& users use& in &ecision*!a#in). $repare& in accor&ance "ith: 1. Accounting Accounting standar standards ds general generally ly accepted accepted in in the Philippines Philippines 2. Intern Internati ational onal Account Accounting ing Standa Standard rdss 3. Other authori authoritatie tatie and and co!prehens co!prehensie ie financial financial repor reporting ting fra!ewor fra!ewor"  " 

Fra!e"or# or Au&itin) an& Relate& ser'ices PURPOSE: Distin)uish au&it ro! relate& ser'ices Au&itin)  Nature o %er'ice +e'el o Assurance Report $ro'i&e& becti'e

Au&it

Re'ie"

,i)h- not absolute

o&erate

$ositi'e

Ne)ati'e

nable the au&itor to epress an opinion "hether the inancial state!entsin all !aterial respects- in accor&ance "ith an i&entiie& reportin) ra!e"or# 

nable an au&itor to state "hether  an(thin) has co!e to the au&itor4s attention that causes the au&itor to  belie'e that F% are not  prepare&- in all !aterials respects- in accor&ance "ith the ra!e"or# 

Relate& %er'ices A)ree&*upon $roce&ures

Co!pilation

None

None

Factual in&in) o proce&ures n)a)e& to carr( out au&it  proce&ures to "hich the au&itor an& the entit( an& an( appropriate thir& parties ha'e a)ree& an& report on actual in&in)s

/&entiication o  co!pile& ino n)a)e to use accountin) epertise to collect- classi(an& su!!arie inancial inor!ation

L#l $% A""&'anc • •

Au&itor4s satisaction to the reliabilit( o an assertion Deter!ine& b( the proce&ures peror!e& an& their results

Au&itors Association Association "ith Financial /nor!ation Associate& "hen the au&itor attaches report  to  to inor!ation or consents to the use o • au&itor4s na!e in a proessional connection / inappropriate use o au&itor4s na!e occurs- au&itors !a(: • 1. Reues Reuestt !ana)e !ana)e!en !entt to stop stop &oin) &oin) so so 2. /nor! /nor! an( #no"n #no"n thir& thir& part( part( user userss 4. 3. %ee# %ee# le)a le)all a&'i a&'ice ce