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NON-ASSURANCE SERVICES. ACT 3142. ATTESTATION ENGAGEMENTS. Assurance svcs = independent professional svcs that improve the quality of information for decision makers. Currently = variety of audit-like or attest svcs for different purposes. ATTESTATION ENGAGEMENTS.

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Attestation engagements

  • Assurance svcs = independent professional svcs that improve the quality of information for decision makers.

  • Currently = variety of audit-like or attest svcs for different purposes

Attestation engagements1

  • In AE = audit reports on the reliability of information or an attestation – another party

  • E.g. A bank requests an auditor to report in writing whether an audit client has adhered to all requirements of a loan agreement

Attestation engagements2

  • Important prerequisite = the practitioner needs to have adequate knowledge of the subject matter

  • E.g. attestation of a company’s compliance with environmental protection laws.

  • E.g. SMS nomination => Akademi Fantasia, Juara Lagu TV3, Malaysian Idol, many others

Level of service

  • In Malaysia, ISAs = 4 levels of engagement and related forms of conclusions:

    • Prospective financial statements examination (ISA 810)

    • Reviews engagement (ISA 910)

    • Agreed-upon procedures (ISA 920)

    • Compilation of financial information (ISA 930)


  • An examination results in a conclusion that is in a positive form.

  • Make direct statement – conform to the applicable criteria

  • Distribution of report = Unrestricted


  • In a review, the practitioner provides a conclusion in the form of negative assurance

  • Report – whether the financial statements are prepared in accordance with accounting stds.

  • Distribution of report = Unrestricted

Agreed upon procedures

  • The procedures to be performed are agreed upon by the practitioner, the responsible party making the assertions, and the specific persons who are the intended users of the practitioner’s report.

  • Report – limited distribution.

Attestation standards

  • 4 common types of engagements – detailed attestation stds have been issued:

    • Web Trust Services

    • SysTrust Services

    • Prospective Financial Statements

    • Agreed-upon procedures

Webtrust services
WebTrust Services

  • A client engages an audit to provide reasonable assurance that a company’s web site complies with certain Trust Services principles and criteria for one or more aspects of e-commerce activities.

  • A site that meets the Trust Services principle is eligible to display the WebTrust electronic seal on its transaction or order page.

  • The presumption is that Web site users believe the WebTrust seal adds credibility to the information in the website.

Systrust services
SysTrust Services

  • The AICPA and CICA = developed the SysTrust Service to provide assurance that a system is reliable.

  • In a SysTrustengagement – the SysTrustlicensed accountant evaluates a company’s computer system using Trust Services principles and criteria and determines whether controls over system exist.

Prospective financial statements
Prospective Financial Statements

  • Forecasts

  • Projections

  • Covered in last week’s lecture!!!

Agreed upon procedures engagements
Agreed-Upon Procedures Engagements

  • AUPE = auditor and management or a third party user agreed that the audit will be limited to certain specific audit procedures.

  • E.g. the auditor performed agreed-upon procedures on the gross sales account for a lease agreement.

Review and compilation services
Review and Compilation Services

  • Entities such as partnership and sole-proprietorship – financial statements reviewed and compiled.

    • Preparation of financial statements – internal / external

    • No audit

    • No assurance expressed

Review of interim financial information for public companies
Review of Interim Financial Information for Public Companies

  • Auditor – perform review procedures – footnote information.