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CHAPTER 24Assurance Services:

Direct ReportingEngagements andBusiness Advisory

Services

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What is ISO ? What is ISO ?

WebTrust ? WebTrust ?

ISO 14000 ? ISO 14000 ?

???

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What is ISO? - non governmental body

- started in 1947

- promotes the development of standardization to facilitate the international exchange of goods and services

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What is WebTrust ?What is WebTrust ?

- joint project of CAs and CPAs

- assurance service for customers of e-commerce

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WebTrustWebTrust

- assurance relates to:

- business practice disclosure

- transaction integrity

- information protection

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WebTrustWebTrust

- business practice disclosure

the entity must disclose its business practices for e-commerce transactions, then execute them accordingly

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WebTrustWebTrust

- transaction integrity

controls must be in place to ensure that customers’ orders placed using e-commerce are completed and billed as agreed

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WebTrustWebTrust

- information protection

controls are maintained to ensure that private customer information is protected

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WebTrust ReportingWebTrust Reporting

- special audit format used

(see chapter 23)

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WebTrust ReportingWebTrust Reporting

- introductory paragraph indicates that auditor is expressing opinion on management’s controls

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WebTrust ReportingWebTrust Reporting

- scope paragraph

defines the standards and explains work required of the auditor

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WebTrust ReportingWebTrust Reporting

- opinion paragraph

indicates that standards were met

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WebTrust ReportingWebTrust Reporting

- explanatory paragraph

indicates that fraud or errors may not be detected, and that controls are subject to change

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WebTrust ReportingWebTrust Reporting

- explanatory paragraph

indicates that WebTrust seal is symbolic of report’s contents, but does not provide assurance in itself

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WebTrust ReportingWebTrust Reporting

- disclaimer paragraph

states that there is no representation regarding the quality of goods and services provided by client

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ISO 14000 AuditISO 14000 Audit

- Assurance and Related Services Guideline (AuG-19) must be followed

- compliance audit (Ch. 25) relates to client adhering to environmental laws

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Forensic AuditForensic Audit

- often carried out on behalf of insurance companies

- attempts to uncover fraudulent claims

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ForensicForensic

- uses expanded “skill set” beyond the normal range of financial auditing

- Association of Certified Fraud Examiners

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Business ValuationBusiness Valuation

- used whenever there is a need to obtain an accurate measure of market values: - marital breakdown - estate planning - business mergers

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Other Advisory ServicesOther Advisory Services

1. Risk management services

2. Controls assessment services

3. Information systems quality assurance services

4. Information systems selection and implementation assistance