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TheauditOf
Related Services
   The story of NOT doing an audit...




                GO
High Level of Assurance
ReasonableAssurance


          Process
High Level of Assurance
ReasonableAssurance


            Process
     Gather sufficient Evidence
High Level of Assurance
ReasonableAssurance


             Process
     Gather sufficient Evidence
      Agrees to any criteria set
High Level of Assurance
ReasonableAssurance


             Process
     Gather sufficient Evidence
      Agrees to any criteria set
    So Positive Assurance report
High Level of Assurance
ReasonableAssurance
                                   I T
                 UD
                A
    AN       Process
     Gather sufficient Evidence
      Agrees to any criteria set
    So Positive Assurance report
Moderate Level of Assurance
LimitedAssurance


         Process
Moderate Level of Assurance
LimitedAssurance


           Process
    Gather sufficient Evidence
Moderate Level of Assurance
LimitedAssurance


           Process
    Gather sufficient Evidence
        Plausible content
Moderate Level of Assurance
LimitedAssurance


           Process
    Gather sufficient Evidence
        Plausible content
   So Negative Assurance report
T
Moderate Level of Assurance

        I
LimitedAssurance
      D d
    U te
   A a
      l ce
     e i    s
    r v    Process

       r
    Gather sufficient Evidence


      e
     s
        Plausible content
   So Negative Assurance report
Types

Review Engagement   Agreed Procedures   Compilation Agreements
Types

Review Engagement   Agreed Procedures   Compilation Agreements
SMEs
Types

Review Engagement   Agreed Procedures   Compilation Agreements
SMEs
Support
Bank Loan
Types

Review Engagement   Agreed Procedures   Compilation Agreements
SMEs
Support
Bank Loan

Limited
Assurance
Types

Review Engagement     Agreed Procedures   Compilation Agreements
SMEs                SMEs
Support
Bank Loan

Limited
Assurance
Types

Review Engagement      Agreed Procedures   Compilation Agreements
SMEs                SMEs
Support             Verify Balances
Bank Loan

Limited
Assurance
Types

Review Engagement      Agreed Procedures   Compilation Agreements
SMEs                SMEs
Support             Verify Balances
Bank Loan

Limited             Report on Results
Assurance
Types

Review Engagement      Agreed Procedures   Compilation Agreements
SMEs                SMEs
Support             Verify Balances
Bank Loan

Limited             Report on Results
Assurance           No Assurance
Types

Review Engagement      Agreed Procedures   Compilation Agreements
SMEs                SMEs                   SMEs
Support             Verify Balances
Bank Loan

Limited             Report on Results
Assurance           No Assurance
Types

Review Engagement      Agreed Procedures   Compilation Agreements
SMEs                SMEs                   SMEs
Support             Verify Balances        Compile accounts
Bank Loan

Limited             Report on Results
Assurance           No Assurance
Types

Review Engagement      Agreed Procedures   Compilation Agreements
SMEs                SMEs                   SMEs
Support             Verify Balances        Compile accounts
Bank Loan                                  No testing

Limited             Report on Results
Assurance           No Assurance
Types

Review Engagement      Agreed Procedures   Compilation Agreements
SMEs                SMEs                   SMEs
Support             Verify Balances        Compile accounts
Bank Loan                                  No testing

Limited             Report on Results
Assurance           No Assurance      No Assurance
Types

Review Engagement                    Agreed Procedures             Compilation Agreements

 Review accounts of those not
                                     Forensic Accounting              Preparing Accounts
       needing an audit




       Interim FS review           Verifying Insurance claims       Preparing Tax compilations




                                Non Financial data (eg Number of
        Due Diligence                                              Preparing cashflow forecasts
                                         subscribers)
Agreed Procedures

Clear Terms   Report
Agreed Procedures

Clear Terms   Report
Scope
Agreed Procedures

Clear Terms   Report
Scope
Purpose
Limitations
Agreed Procedures

Clear Terms   Report
Scope
Purpose
Limitations
Format
Agreed Procedures

Clear Terms   Report
Scope         Facts
Purpose
Limitations
Format
Agreed Procedures

Clear Terms   Report
Scope         Facts
Purpose       Verify Balances
Limitations
Format
Agreed Procedures

Clear Terms   Report
Scope         Facts
Purpose       Verify Balances
Limitations
Format        No Assurance
Agreed Procedures

Clear Terms   Report
Scope         Facts
Purpose       Verify Balances
Limitations
Format        No Assurance
              User conclusions
Compilation
             Agreement
Principles    Report
Compilation
             Agreement
Principles    Report
Compile FS
Compilation
              Agreement
Principles     Report
Compile FS
Clear terms
Compilation
              Agreement
Principles     Report
Compile FS
Clear terms
Get kn.o.b
Compilation
             Agreement
Principles     Report
Compile FS
Clear terms
Get kn.o.b
Know formats
Compilation
             Agreement
Principles    Report
Compile FS
Clear terms No Assurance
Get kn.o.b
Know formats
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs
Support
Bank Loan
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs
Support
Bank Loan

Moderate
Assurance
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement
Support
Bank Loan

Moderate
Assurance
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement
Support             Letter
Bank Loan

Moderate
Assurance
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement
Support             Letter
Bank Loan           KOB

Moderate
Assurance
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement
Support             Letter
Bank Loan           KOB
                    Sceptical
Moderate
Assurance
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement
Support             Letter
Bank Loan           KOB
                    Sceptical
Moderate            Evidence
Assurance
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement
Support             Letter
Bank Loan           KOB
                    Sceptical
Moderate            Evidence
Assurance           Enquire Mgt
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement Substantive
Support             Letter
Bank Loan           KOB
                    Sceptical
Moderate            Evidence
Assurance           Enquire Mgt
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement Substantive
Support             Letter      Look for more
Bank Loan           KOB
                    Sceptical
Moderate            Evidence
Assurance           Enquire Mgt
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement Substantive Negative
Support             Letter      Look for more Assurance
Bank Loan           KOB
                    Sceptical
Moderate            Evidence
Assurance           Enquire Mgt
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement Substantive Negative
Support             Letter      Look for more Assurance
Bank Loan           KOB                       “We aren’t aware

                    Sceptical
Moderate            Evidence
Assurance           Enquire Mgt
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement Substantive Negative
Support             Letter      Look for more Assurance
Bank Loan           KOB                       “We aren’t aware
                                              ..material
                    Sceptical
Moderate            Evidence
Assurance           Enquire Mgt
Review Engagemnt

                                        Suspect
Review Engagement   Plan & Procedures   Misstatement?   Report
SMEs                Engagement Substantive Negative
Support             Letter      Look for more Assurance
Bank Loan           KOB                       “We aren’t aware
                                              ..material
                    Sceptical                 modifications”
Moderate            Evidence
Assurance           Enquire Mgt
Examples of


ReviewEngagement
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans
Examples of


ReviewEngagement
No.   Type                            Details




                                      Report published with accounts (negative
1     Review Interim FS
                                      assurance)




                                      Verify Management representations
                                      Verify Assets & Liabilities
2     Due Diligence (get kob)         Identify Operational Problems
                                      Help plan acquisition
                                      Look for trends / synergies / forecasts / plans

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Audit of related services p7

  • 1. TheauditOf Related Services The story of NOT doing an audit... GO
  • 2. High Level of Assurance ReasonableAssurance Process
  • 3. High Level of Assurance ReasonableAssurance Process Gather sufficient Evidence
  • 4. High Level of Assurance ReasonableAssurance Process Gather sufficient Evidence Agrees to any criteria set
  • 5. High Level of Assurance ReasonableAssurance Process Gather sufficient Evidence Agrees to any criteria set So Positive Assurance report
  • 6. High Level of Assurance ReasonableAssurance I T UD A AN Process Gather sufficient Evidence Agrees to any criteria set So Positive Assurance report
  • 7. Moderate Level of Assurance LimitedAssurance Process
  • 8. Moderate Level of Assurance LimitedAssurance Process Gather sufficient Evidence
  • 9. Moderate Level of Assurance LimitedAssurance Process Gather sufficient Evidence Plausible content
  • 10. Moderate Level of Assurance LimitedAssurance Process Gather sufficient Evidence Plausible content So Negative Assurance report
  • 11. T Moderate Level of Assurance I LimitedAssurance D d U te A a l ce e i s r v Process r Gather sufficient Evidence e s Plausible content So Negative Assurance report
  • 12. Types Review Engagement Agreed Procedures Compilation Agreements
  • 13. Types Review Engagement Agreed Procedures Compilation Agreements SMEs
  • 14. Types Review Engagement Agreed Procedures Compilation Agreements SMEs Support Bank Loan
  • 15. Types Review Engagement Agreed Procedures Compilation Agreements SMEs Support Bank Loan Limited Assurance
  • 16. Types Review Engagement Agreed Procedures Compilation Agreements SMEs SMEs Support Bank Loan Limited Assurance
  • 17. Types Review Engagement Agreed Procedures Compilation Agreements SMEs SMEs Support Verify Balances Bank Loan Limited Assurance
  • 18. Types Review Engagement Agreed Procedures Compilation Agreements SMEs SMEs Support Verify Balances Bank Loan Limited Report on Results Assurance
  • 19. Types Review Engagement Agreed Procedures Compilation Agreements SMEs SMEs Support Verify Balances Bank Loan Limited Report on Results Assurance No Assurance
  • 20. Types Review Engagement Agreed Procedures Compilation Agreements SMEs SMEs SMEs Support Verify Balances Bank Loan Limited Report on Results Assurance No Assurance
  • 21. Types Review Engagement Agreed Procedures Compilation Agreements SMEs SMEs SMEs Support Verify Balances Compile accounts Bank Loan Limited Report on Results Assurance No Assurance
  • 22. Types Review Engagement Agreed Procedures Compilation Agreements SMEs SMEs SMEs Support Verify Balances Compile accounts Bank Loan No testing Limited Report on Results Assurance No Assurance
  • 23. Types Review Engagement Agreed Procedures Compilation Agreements SMEs SMEs SMEs Support Verify Balances Compile accounts Bank Loan No testing Limited Report on Results Assurance No Assurance No Assurance
  • 24. Types Review Engagement Agreed Procedures Compilation Agreements Review accounts of those not Forensic Accounting Preparing Accounts needing an audit Interim FS review Verifying Insurance claims Preparing Tax compilations Non Financial data (eg Number of Due Diligence Preparing cashflow forecasts subscribers)
  • 27. Agreed Procedures Clear Terms Report Scope Purpose Limitations
  • 28. Agreed Procedures Clear Terms Report Scope Purpose Limitations Format
  • 29. Agreed Procedures Clear Terms Report Scope Facts Purpose Limitations Format
  • 30. Agreed Procedures Clear Terms Report Scope Facts Purpose Verify Balances Limitations Format
  • 31. Agreed Procedures Clear Terms Report Scope Facts Purpose Verify Balances Limitations Format No Assurance
  • 32. Agreed Procedures Clear Terms Report Scope Facts Purpose Verify Balances Limitations Format No Assurance User conclusions
  • 33. Compilation Agreement Principles Report
  • 34. Compilation Agreement Principles Report Compile FS
  • 35. Compilation Agreement Principles Report Compile FS Clear terms
  • 36. Compilation Agreement Principles Report Compile FS Clear terms Get kn.o.b
  • 37. Compilation Agreement Principles Report Compile FS Clear terms Get kn.o.b Know formats
  • 38. Compilation Agreement Principles Report Compile FS Clear terms No Assurance Get kn.o.b Know formats
  • 39. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report
  • 40. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs
  • 41. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Support Bank Loan
  • 42. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Support Bank Loan Moderate Assurance
  • 43. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Support Bank Loan Moderate Assurance
  • 44. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Support Letter Bank Loan Moderate Assurance
  • 45. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Support Letter Bank Loan KOB Moderate Assurance
  • 46. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Support Letter Bank Loan KOB Sceptical Moderate Assurance
  • 47. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Support Letter Bank Loan KOB Sceptical Moderate Evidence Assurance
  • 48. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Support Letter Bank Loan KOB Sceptical Moderate Evidence Assurance Enquire Mgt
  • 49. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Substantive Support Letter Bank Loan KOB Sceptical Moderate Evidence Assurance Enquire Mgt
  • 50. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Substantive Support Letter Look for more Bank Loan KOB Sceptical Moderate Evidence Assurance Enquire Mgt
  • 51. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Substantive Negative Support Letter Look for more Assurance Bank Loan KOB Sceptical Moderate Evidence Assurance Enquire Mgt
  • 52. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Substantive Negative Support Letter Look for more Assurance Bank Loan KOB “We aren’t aware Sceptical Moderate Evidence Assurance Enquire Mgt
  • 53. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Substantive Negative Support Letter Look for more Assurance Bank Loan KOB “We aren’t aware ..material Sceptical Moderate Evidence Assurance Enquire Mgt
  • 54. Review Engagemnt Suspect Review Engagement Plan & Procedures Misstatement? Report SMEs Engagement Substantive Negative Support Letter Look for more Assurance Bank Loan KOB “We aren’t aware ..material Sceptical modifications” Moderate Evidence Assurance Enquire Mgt
  • 56. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans
  • 57. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans
  • 58. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans
  • 59. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans
  • 60. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans
  • 61. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans
  • 62. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans
  • 63. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans
  • 64. Examples of ReviewEngagement No. Type Details Report published with accounts (negative 1 Review Interim FS assurance) Verify Management representations Verify Assets & Liabilities 2 Due Diligence (get kob) Identify Operational Problems Help plan acquisition Look for trends / synergies / forecasts / plans

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