1. 1Auditing, Attestation, and Assurance Services
Week 1 – DQ 1
Why is public accounting often viewed as a guarantor of results, or even as a provider
of assurance that one’s investment is of high quality? To what extent is it reasonable to
view the auditor as a guarantor? Explain. To what extent do you believe that user
expectations of the public accounting profession appear to be unwarranted? Explain.
Response #1
In my opinion most public accounting are viewed as a guarantor of results (some time
called number crunchers), or even as a provider of assurance that other people investment
is of high quality for several reason. Therefore, public accountings are often perceived as
an independent analysis of an entity’s financial position. Whereas the reasons may include
the standards are procedures that accounting professionals are required to uphold. GAAP,
GAAS, AICPA, SOX, etc., now has set up the guidelines and regulations that are designed to
instill confidence in the public’s perception of professional accounting and auditing work.
Week 1 – DQ 1
Why is public accounting often viewed as a guarantor of results, or even as a provider
of assurance that one’s investment is of high quality? To what extent is it reasonable to
view the auditor as a guarantor? Explain. To what extent do you believe that user
expectations of the public accounting profession appear to be unwarranted? Explain.
Response #1
In my opinion most public accounting are viewed as a guarantor of results (some time
called number crunchers), or even as a provider of assurance that other people investment
is of high quality for several reason. Therefore, public accountings are often perceived as
an independent analysis of an entity’s financial position. Whereas the reasons may include
the standards are procedures that accounting professionals are required to uphold. GAAP,
GAAS, AICPA, SOX, etc., now has set up the guidelines and regulations that are designed to
instill confidence in the public’s perception of professional accounting and auditing work.

2. 2Auditing, Attestation, and Assurance Services
Week 1 – DQ 2
The Sarbanes-Oxley Act of 2002 has been described as the most far-reaching
legislation affecting business since the passage of the 1933 Securities Act. What are
the specific portions of the legislation that affect the external audit profession, and
how do they affect the profession? How does the legislation affect the internal audit
profession? What are some activities that are implied in the legislation, as well as
activities that will likely emerge as companies implement various provisions of the
act? Do you believe the legislation enhances the power and prestige of the audit
profession, or alternatively, does it decrease both the power and prestige of the
profession? Explain.
Response #1
The Sarbanes-Oxley Act of 2002 has been described as the most far-reaching
legislation affecting business since the passage of the 1933 Securities Act.
What are the specific portions of the legislation that affect the external audit
profession, and how do they affect the profession? How does the legislation affect the
internal audit profession?
Generally Accepted Auditing Standards
Name
ACC/490
Date
Instructor Name

3. 3Auditing, Attestation, and Assurance Services
Generally Accepted Auditing Standards
The three major elements of Generally Accepted Auditing Standards (GAAS) are general
standards, standards of field work, and standards of reporting. These standards are applicable in
companies like Jacobsen and Wachterhauser in their process of auditing and reporting to the stakeholders.
General standards require the auditing to be conducted by a professional auditor, issues to be
addressed independently and with sound mental attitude, and the undertaking of professional care in the
process. Standards of field work requires proper planning and supervision of the task, adequate
understanding of entity for the purposes of proper assessment of material misstatements risks, and
competence to be used as evidence of auditing process for a reasonable opinion to be reached. Standards
of reporting demand the reporting to be done with adherence to the GAAS principles and acknowledge
situations in which the principles have not been observed consistently during the current period.
Furthermore, the standards require that informative disclosures be reasonable in financial statements and
that indicates opinion, or expression about financial statements (Dauber, Qureshi, & Levine, 2008, p. 36).
Week 2 – DQ 1
Why is public accounting often viewed as a guarantor of results, or even as a provider
of assurance that one’s investment is of high quality? To what extent is it reasonable to
view the auditor as a guarantor? Explain. To what extent do you believe that user
expectations of the public accounting profession appear to be unwarranted? Explain.
Response #1
I do not think viewing a public accounting or an auditor for that matter as a guarantor of
results is fair. Instead, auditors should be viewed as those responsible to plan and perform
an audit to obtain reasonable assurance that the financial statements are free from material
misstatement. In other words, auditors provided, “Reasonable assurance but not a
guarantee that financial statements are free from errors or misstatements. Auditors do not
review all financial statement documents, instead they perform the audit on a test basis to

4. 4Auditing, Attestation, and Assurance Services
gain comfort over the financial statements. Furthermore, auditors do address the quality of
an investment, they provide an opinion that the financial statements present to within a
material amount the company’s financial results. On the other hand, the extent to which it
is reasonable to view the auditor as a guarantor is high.
Week 2 – DQ 1
Why is public accounting often viewed as a guarantor of results, or even as a provider
of assurance that one’s investment is of high quality? To what extent is it reasonable to
view the auditor as a guarantor? Explain. To what extent do you believe that user
expectations of the public accounting profession appear to be unwarranted? Explain.
Response #1
I do not think viewing a public accounting or an auditor for that matter as a guarantor of
results is fair. Instead, auditors should be viewed as those responsible to plan and perform
an audit to obtain reasonable assurance that the financial statements are free from material
misstatement. In other words, auditors provided, “Reasonable assurance but not a
guarantee that financial statements are free from errors or misstatements. Auditors do not
review all financial statement documents, instead they perform the audit on a test basis to
gain comfort over the financial statements. Furthermore, auditors do address the quality of
an investment, they provide an opinion that the financial statements present to within a
material amount the company’s financial results.
Week 2 – DQ 2
The third generally accepted standard of audit fieldwork requires that auditors obtain
sufficient, competent audit evidence to afford a reasonable basis for an opinion
regarding the financial statements under examination. In considering what
constitutes sufficient, competent audit evidence, a distinction should be made between
underlying accounting data and all corroborating information available to the
auditor. What presumptions can be made about the following?

5. 5Auditing, Attestation, and Assurance Services
• The relative competence of evidence obtained from external and internal
sources.
• The role of internal control with respect to internal evidence produced by a
client’s data processing system.
• The relative persuasiveness of auditor observation and recalculation evidence
compared to external, external-internal, and internal documentary evidence.
Comprehensive Question 1-23
(Organizations associated with the public accounting profession) Several private and
public sector organizations are associated with the profession. Listed below are activities
pertaining to these organizations.
1. License individuals to practice as CPAs. State Boards of Accountancy
2. Promulgate GAAP. Financial Accounting Standards Board (FASB) and
Governmental Accounting Standards Board (GASB)
3. Issue Statements on Auditing Standards. American Institute of Certified Public
Accountants (AICPA)
4. Regulate the distribution and trading of securities offered for public sale. U.S.
Securities and Exchange Commission (SEC)
5. Establish its own code of professional ethics. American Institute of Certified Public
Accountants (AICPA), State Societies of CPA’s, and State Boards of Accountancy
Auditing, Attestation, and Assurance Services
Name
ACC/490
Date
Instructor Name

6. 6Assessing Materiality and Risk Simulation

7. 7Assessing Materiality and Risk Simulation
Auditing, Attestation, and Assurance Services
Auditing, attestation, and assurance services are an important role of the auditing profession.
An audit is an official examination of financial records and accounts of a business. Attestation
services provide a determination about the reliability of an assertion from another party
usually performed by a certified public accountant. Assurance services provide the certified
public accountant with important information for the decision-making process. Discussed
within this paper team A will compare and contrast auditing, attestation, and assurance
services. Included in this document is an example of each type of these services as well as
who would request each of the services. Addressed is also the standard that apply to each
service and who establishes the standards for the services.
Ch. 6 & 7 Textbook Exercises
Name
Comprehensive Question 6-26
(Audit programs and assertions) Assume that you are responsible for developing an
audit program for a manufacturing client that sells to over 1,400 customers. You want to
ensure your audit program addresses all relevant assertions for sales and accounts
receivable. Address the following question in the context of the audit sales and
receivables for this manufacturing client.
Required
A. What is the purpose of an audit program?

8. 8Assessing Materiality and Risk Simulation
Week 3 – DQ 1
What are the two types of audit tests? What are some examples of each of these two
types of tests? How will the auditor use the data gathered from these tests?
Response #1
The two types of audit tests are tests of control and substantive tests. According to Boynton
and Johnson (2006), a test of controls is employed "to determine effectiveness of design
and operation of internal controls", whereas a substantive test is employed “to determine
fairness of significant financial statement assertions”. An example of tests of control would
be inspecting original records such as checks, journal entries, invoices, memos, receipts,
and vouchers that support and/or serve as proof of a business transaction.
Week 3 – DQ 1
What are the two types of audit tests? What are some examples of each of these two
types of tests? How will the auditor use the data gathered from these tests?
Response #1
The two types of audit tests are tests of control and substantive tests. According to Boynton
and Johnson (2006), a test of controls is employed "to determine effectiveness of design
and operation of internal controls", whereas a substantive test is employed “to determine
fairness of significant financial statement assertions”. An example of tests of control would
be inspecting original records such as checks, journal entries, invoices, memos, receipts,
and vouchers that support and/or serve as proof of a business transaction
Week 3 – DQ 2
Why do auditors have to consider the internal controls of the organization? What are
some key elements of internal control? Which are the most important? How will the

9. 9Assessing Materiality and Risk Simulation
auditor have to modify the audit program if the internal controls are deemed
inadequate to support management assertions?
Response #1
Auditors have to consider an organizations internal control so the audit will be effective,
efficient, and so they will have awareness of where misstatements might occur. An auditor
must understand the procedures and policies and the length of operation per each
component of internal control; control environment, risk assessment, information and
communication, control archives, monitoring, and antifraud programs and control.
Individual Ch. 5, 6, & 7 Textbook Exercises
Comprehensive question 5-30
(Assertions) In planning the audit of a client's financial statements, an auditor identified
the following issues that need audit attention.
1. The allowance for doubtful accounts is fairly presented in amount. Valuation or allocation
2. All accounts payable owed as of the balance sheet date are included in the financial
statements. Completeness
3. All purchase returns recorded in the general ledger are valid. Existence or occurrence
4. There is a risk that purchases made in the last week of the month might be recorded in the
following period. Completeness
5. Assessing Materiality and Risk Simulation
6. Name
7. ACC/490
8. Date

10. 10Assessing Materiality and Risk Simulation
9. Instructor Name

11. 11Assessing Materiality and Risk Simulation

12. 12Assessing Materiality and Risk Simulation
Assessing Materiality and Risk Simulation
10. The Assessing Materiality and Risk simulation identifies risks and important components of the
auditing process. Some accounts must be audited 100%, whereas some are sampled. Other accounts
require a combination of details and components to achieve precise results. Three risks that make up
audit risk are interrelated.
11. Risks
12. The three interrelated risks are inherent risk (IR), control risk (CR), and detection risk
(DR). This interrelation is perceived when the organization is sensible to material misstatement
(undetected in a poor control environment) propelling inherent risk to a high level and
consequently causing higher control risk and higher detection risk. Classifying the risks
accordingly helps prepare for audits.
Week 4 – DQ 1
Why do auditors find it necessary to use sampling? What are the risks associated with
sampling?
How might these risks affect the audit conclusion?
Response #1
Sampling is widely used in auditing. Auditors use sampling because sometimes is not
possible and economically justifiable to review all items. In other words, because of time
and focus, sampling is very popular. Sampling allows auditors to review items in order to
establish a reasonable basis on which to make an opinion. There are certain methods
whereby an individual could examine a certain portion (sample) of a population and reach
statistically valid conclusions based on the sample.
Week 4 – DQ 1

13. 13Assessing Materiality and Risk Simulation
Why do auditors find it necessary to use sampling? What are the risks associated with
sampling?
How might these risks affect the audit conclusion?
Response #1
Sampling is widely used in auditing. Auditors use sampling because sometimes is not
possible and economically justifiable to review all items. In other words, because of time
and focus, sampling is very popular. Sampling allows auditors to review items in order to
establish a reasonable basis on which to make an opinion. There are certain methods
whereby an individual could examine a certain portion (sample) of a population and reach
statistically valid conclusions based on the sample.
Week 4 – DQ 2
How does the auditor evaluate the results of audit procedures? What types of
qualitative factors might the auditor consider when encountering an error? How
might the results affect the audit conclusion?
Response #1
The auditor must perform risk assessment procedures to evaluate the type, magnitude and
likelihood of potential misstatements. Once the type is established by recognizing risk
factors and then assessing their potential for risk statements, the auditor determines which
misstatements are the most significant. After the risks and significance of certain
misstatements are identified, the auditor determines the likelihood of a material
misstatement occurring to establish the level of substantive tests to conduct.