Auditing & Assurance Services: A Systematic Approach ISE

Product 9781265019624 is an International edition of Auditing & Assurance A Systematic Approach 12th Edition. by William F. Messier Jr, Steven M. Glover, Douglas F. Prawitt*****Student textbook only. No online Connect Access Code included******The continuing rapid pace of change in auditing standards and practices, together with the recent emergence of audit data analytics and data visualization technologies, has had a significant effect on the auditing profession. In this ever-changing environment, it is crucial that students engage with their learning in a relevant real-world context, have access to hands on data analytics and visualization, and learn the importance of critical thinking and decision making through the lens of a systematic, risk-based approach. Cover Auditing & Assurance Services About the Authors Why a New Edition? Acknowledgments Brief Contents Table of Contents Part 1: Introduction to Assurance and Financial Statement Auditing Chapter 1: An Introduction to Assurance and Financial Statement Auditing Tips for Learning Auditing (and How Learning It Will Benefit You!) The Demand for Auditing and Assurance Principals and Agents The Role of Auditing An Assurance Analogy: The Case of the House Inspector Seller Assertions, Information Asymmetry, and Inspector Characteristics Desired Characteristics of the House Inspection Service Relating the House Inspection Analogy to Financial Statement Auditing Management Assertions and Financial Statements Auditing, Attest, and Assurance Services Defined Fundamental Concepts in Conducting a Financial Statement Audit Materiality Audit Risk Audit Evidence Regarding Management Assertions Sampling: Inferences Based on Limited Observations The Audit Process Overview of the Financial Statement Auditing Process Major Phases of the Audit The Unqualified/Unmodified Audit Report Other Types of Audit Reports Audit Data Analytics Audit Data Analytics (ADA) Financial Technologies Technology and Professional Judgment Conclusion Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Internet Assignment Hands-On Cases IDEA and Tableau Chapter 2: The Financial Statement Auditing Environment Types of Auditors External Auditors Internal Auditors Government Auditors Fraud Auditors Types of Other Audit, Attest, and Assurance Services Other Audit Services Attest Services Assurance Services Other Non-audit/Non-assurance Services Public Accounting Firms Organization and Composition Two Decades of Challenge and Change for Financial Statement Auditors Government Regulation SocietyÕs Expectations and the AuditorÕs Responsibilities The Context of Financial Statement Auditing The Business Entity as the Primary Context of Auditing A Model of Business Corporate Governance Objectives, Strategies, Processes, Controls, Transactions, and Reports A Model of Business Processes: Five Components Organizations That Affect the Public Accounting Profession Securities and Exchange Commission (SEC) Public Company Accounting Oversight Board (PCAOB) American Institute of Certified Public Accountants (AICPA) International Auditing and Assurance Standards Board (IAASB) Financial Accounting Standards Board (FASB) International Accounting Standards Board (IASB) Auditing Standards Three Sets of Auditing Standards: The Roles of the ASB, PCAOB, and IAASB Principles Underlying an Audit Conducted in Accordance with Generally Accepted Auditing Standards The Nature of Auditing Standards and the Codification ofÊStandards Ethics, Independence, and the Code of Professional Conduct Conclusion Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Internet Assignments Hands-On Cases IDEA and Tableau Part 2: Audit Planning and Basic Auditing Concepts Chapter 3: Audit Planning, Types of Audit Tests, and Materiality Client Acceptance and Continuance Prospective Client Acceptance Client Continuance Preliminary Engagement Activities Determine the Audit Engagement Team Requirements Assess Compliance with Ethical and Independence Requirements Establish an Understanding with the Entity Planning the Audit Audit Strategy and Plan Assess Business Risks Establish Materiality Consider Multilocations or Business Units Assess the Need for Specialists Consider Violations of Laws and Regulations Identify Related Parties Consider Additional Value-Added Services Document the Overall Audit Strategy, Audit Plan, and Prepare Audit Programs Supervision of the Audit Types of Audit Procedures Risk Assessment Procedures Tests of Controls Substantive Procedures Dual-Purpose Tests Audit Data Analytics Materiality Steps in Applying Materiality An Example Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Internet Assignments Hands-On Cases IDEA Chapter 4: Risk Assessment Audit Risk The Audit Risk Model Use of the Audit Risk Model The AuditorÕs Risk Assessment Process ManagementÕs Strategies, Objectives, and Business Risks AuditorÕs Risk Assessment Procedures Assessing Business Risks Evaluate the EntityÕs Risk Assessment Process Assessing the Risk of Material Misstatement Causes and Types of Misstatements The Fraud Risk Assessment Process The AuditorÕs Response to the Results of the Risk Assessments Evaluation of Audit Test Results Documentation of the AuditorÕs Risk Assessment and Response Communications about Fraud to Management, the Audit Committee, and Others Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Internet Assignment Hands-On Cases IDEA and Tableau Chapter 5: Evidence and Documentation The Relationship of Audit Evidence to the Audit Report Management Assertions Assertions about Classes of Transactions and Events, and Related Disclosures, for the Period under Audit Assertions about Account Balances, and Related Disclosures, atÊthe Period End Understanding Audit Evidence Information Used as Audit Evidence The Sufficiency and Appropriateness of Audit Evidence The Evaluation of Audit Evidence Audit Procedures for Obtaining Audit Evidence Inspection Observation Inquiry Confirmation Recalculation Reperformance Analytical Procedures Reliability of Evidence The Audit Testing Hierarchy An ÒAssurance BucketÓ Analogy Audit Documentation Purposes of Audit Documentation Content of Audit Documentation Examples of Audit Documentation Format of Audit Documentation Organization of Audit Documentation Ownership of Audit Documentation Audit Document Archiving and Retention Advanced Module: Analytical Procedures Auditor Decision Process-Analytical Procedures Risk Assessment Analytical Procedures Substantive Analytical Procedures Final Analytical Procedures Types of Analytical Procedures Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Internet Assignment Hands-On Cases IDEA and Tableau Part 3: Understanding and Auditing Internal Control Chapter 6: Internal Control in a Financial Statement Audit Introduction Internal ControlÑan Overview Definition of Internal Control Controls Relevant to the Audit The Effect of Information Technology on Internal Control The COSO Framework Components of Internal Control Control Environment The EntityÕs Risk Assessment Process Control Activities Information and Communication Monitoring of Controls Planning an Audit Strategy Substantive Strategy Reliance Strategy Obtain an Understanding of Internal Control Overview Understanding the Control Environment Understanding the EntityÕs Risk Assessment Process Understanding Control Activities Understanding the Information System and Communications Understanding Monitoring of Controls Documenting the Understanding of Internal Control The Effect of Entity Size on Internal Control The Limitations of an EntityÕs Internal Control Assessing Control Risk Identifying Specific Controls That Will Be Relied Upon Performing Tests of Controls Concluding on the Achieved Level of Control Risk Documenting the Achieved Level of Control Risk An Example Substantive Procedures Timing of Audit Procedures Interim Tests of Controls Interim Substantive Procedures Auditing Accounting Applications Processed by Service Organizations Communication of Internal Control_Related Matters Advanced Module 1: Types of Controls in an IT Environment General Controls Application Controls Advanced Module 2: Flowcharting Techniques Symbols Organization and Flow Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Hands-On Cases IDEA Chapter 7: Auditing Internal Control over Financial Reporting Management Responsibilities under Section 404 Auditor Responsibilities under Section 404 and ASÊ2201 Internal Control over Financial Reporting Defined Internal Control Deficiencies Defined Control Deficiency Material Weakness Significant Deficiency Likelihood and Magnitude ManagementÕs Assessment Process Identify Financial Reporting Risks and Related Controls Consider Which Locations to Include in the Evaluation Evaluate Evidence about the Operating Effectiveness of ICFR Reporting Considerations ManagementÕs Documentation Performing an Audit of ICFR Plan the Audit of ICFR The Role of Risk Assessment and the Risk of Fraud Scaling the Audit Using the Work of Others Identify Controls to Test Identify Entity-Level Controls Identifying Significant Accounts and Disclosures and Their Relevant Assertions Understanding Likely Sources of Misstatements Select Controls to Test Evaluate the Design and Test the Operating Effectiveness of Controls Evaluating Design Effectiveness of Controls Testing and Evaluating Operating Effectiveness of Controls Evaluating Identified Control Deficiencies Examples of Control Deficiency Evaluation Remediation of a Material Weakness Written Representations Auditor Documentation Requirements Auditor Reporting on ICFR Elements of the AuditorÕs Report Unqualified Opinion Adverse Opinion for a Material Weakness Disclaimer for Scope Limitation Other Reporting Issues ManagementÕs Report Incomplete or Improperly Presented The Auditor Decides to Refer to the Report of Other Auditors Subsequent Events ManagementÕs Report Contains Additional Information Reporting on a Remediated Material Weakness at an Interim Date Additional Required Communications in an Audit of ICFR Advanced Module 1: Special Considerations for an Audit of Internal Controls Use of Service Organizations Safeguarding of Assets Advanced Module 2: Using Technology in the Audit of ICFR Generalized Audit Software Custom Audit Software Test Data Key Terms Review Questions Multiple-Choice Questions Problems Internet Assignments Hands-On Cases Tableau Part 4: Statistical and Nonstatistical Sampling Tools for Auditing Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls Overview of Audit Sampling Definitions and Key Concepts Audit Sampling Sampling Risk Confidence Level Tolerable and Expected Error Audit Evidence Choices That Do and Do Not Involve Sampling Types of Audit Sampling Nonstatistical versus Statistical Sampling Types of Statistical Sampling Techniques Attribute Sampling Applied to Tests of Controls Planning Performance Evaluation Nonstatistical Sampling for Tests of Controls Determining the Sample Size Selecting the Sample Items Calculating the Computed Upper Deviation Rate Conclusion Advanced Module 1: Considering the Effect on Sample Size of a Small Population Advanced Module 2: Comparing Terminology for Attribute Sampling between IDEA and Sampling Tables Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Hands-On Cases IDEA Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Balances Sampling for Substantive Tests of Details of Account Balances Monetary-Unit Sampling Advantages Disadvantages Applying Monetary-Unit Sampling Planning Performance Evaluation Nonstatistical Sampling for Tests of Account Balances Identifying Individually Significant Items Determining the Sample Size Selecting Sample Items Calculating the Sample Results An Example of Nonstatistical Sampling Advanced Module 1: Classic Variables Sampling Advantages Disadvantages Applying Classical Variables Sampling Advanced Module 2: Comparing Terminology for Monetary-Unit Sampling between IDEA and Manual Calculation Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Hands-On Cases IDEA Part 5: Auditing Business Processes Chapter 10: Auditing the Revenue Process Revenue Recognition Overview of the Revenue Process Types of Transactions and Financial Statement Accounts Affected Types of Documents and Records The Major Functions Key Segregation of Duties Inherent Risk Assessment Industry-Related Factors The Complexity and Contentiousness of Revenue RecognitionÊIssues The Difficulty of Auditing Transactions and Account Balances Misstatements Detected in Prior Audits Control Risk Assessment Understand and Document Internal Control Plan and Perform Tests of Controls Set and Document Control Risk Control Activities and Tests of ControlsÑRevenue Transactions Occurrence of Revenue Transactions Completeness of Revenue Transactions Authorization of Revenue Transactions Accuracy of Revenue Transactions Cutoff of Revenue Transactions Classification of Revenue Transactions Presentation of Revenue Transactions and Events Control Activities and Tests of ControlsÑCash Receipts Transactions Occurrence of Cash Receipts Transactions Completeness of Cash Receipts Transactions Authorization of Cash Discounts Accuracy of Cash Receipts Transactions Cutoff of Cash Receipts Transactions Classification of Cash Receipts Control Activities and Tests of ControlsÑSales Returns and Allowances Transactions Relating the Assessed Level of Control Risk to Substantive Procedures Auditing Revenue-Related Accounts Substantive Analytical Procedures Tests of Details of Classes of Transactions, Account Balances, and Disclosures Completeness Cutoff Existence Rights and Obligations Accuracy, Valuation, and Allocation Classification Presentation The Confirmation ProcessÑAccounts Receivable Types of Confirmations Timing Confirmation Procedures Alternative Procedures Auditing Other Receivables Evaluating the Audit FindingsÑRevenue-Related Accounts Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Internet Assignments Hands-On Cases IDEA and Tableau Chapter 11: Auditing the Purchasing Process Expense and Liability Recognition Overview of the Purchasing Process Types of Transactions and Financial Statement Accounts Affected Types of Documents and Records The Major Functions The Key Segregation of Duties Inherent Risk Assessment Industry-Related Factors Misstatements Detected in Prior Audits Control Risk Assessment Understand and Document Internal Control Plan and Perform Tests of Controls Set and Document Control Risk Control Activities and Tests of ControlsÑPurchase Transactions Occurrence of Purchase Transactions Completeness of Purchase Transactions Authorization of Purchase Transactions Accuracy of Purchase Transactions Cutoff of Purchase Transactions Classification of Purchase Transactions Presentation of Purchase Transactions Control Activities and Tests of ControlsÑCash Disbursement Transactions Occurrence of Cash Disbursement Transactions Completeness of Cash Disbursement Transactions Authorization of Cash Disbursement Transactions Accuracy of Cash Disbursement Transactions Cutoff of Cash Disbursement Transactions Classification of Cash Disbursement Transactions Control Activities and Tests of ControlsÑPurchase Return Transactions Relating the Assessed Level of Control Risk to Substantive Procedures Auditing Accounts Payable and Accrued Expenses Substantive Analytical Procedures Tests of Details of Classes of Transactions, Account Balances, and Disclosures Completeness Existence Cutoff Rights and Obligations Accuracy, Valuation, and Allocation Classification Presentation Accounts Payable Confirmations Evaluating the Audit FindingsÑAccounts Payable and Related Advanced Module: Auditing the Tax Provision and Related Balance Sheet Accounts Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Internet Assignments Hands-On Cases IDEA and Tableau Chapter 12: Auditing the Human Resource Management Process Overview of the Human Resource Management Process Types of Transactions and Financial Statement Accounts Affected Types of Documents and Records The Major Functions The Key Segregation of Duties Inherent Risk Assessment Control Risk Assessment Understand and Document Internal Control Plan and Perform Tests of Controls Set and Document the Control Risk Control Activities and Tests of ControlsÑPayroll Transactions Occurrence of Payroll Transactions Authorization of Payroll Transactions Accuracy of Payroll Transactions Classification of Payroll Transactions Presentation of Payroll Transactions and Compensation Data Relating the Assessed Level of Control Risk to Substantive Procedures Auditing Payroll-Related Accounts Substantive Analytical Procedures Tests of Details of Classes of Transactions, Account Balances, and Disclosures Payroll Expense Accounts Accrued Payroll Liabilities Evaluating the Audit FindingsÑPayroll-Related Accounts Advanced Module: Share-Based Compensation Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Internet Assignment Hands-On Cases IDEA and Tableau Chapter 13: Auditing the Inventory Management Process Overview of the Inventory Management Process Types of Documents and Records The Major Functions The Key Segregation of Duties Inherent Risk Assessment Industry-Related Factors Engagement and Operating Characteristics Control Risk Assessment Understand and Document Internal Control Plan and Perform Tests of Controls Set and Document the Control Risk Control Activities and Tests of ControlsÑInventory Transactions Occurrence of Inventory Transactions Completeness of Inventory Transactions Authorization of Inventory Transactions Accuracy of Inventory Transactions Cutoff of Inventory Transactions Classification of Inventory Transactions Presentation of Inventory Relating the Assessed Level of Control Risk to Substantive Procedures Auditing Inventory Substantive Analytical Procedures Auditing Standard Costs Materials Labor Overhead Observing Physical Inventory Tests of Details of Classes of Transactions, Account Balances, and Disclosures Accuracy Cutoff Existence Completeness Rights and Obligations Valuation, Accuracy, and Allocation Classification and Presentation Evaluating the Audit FindingsÑInventory Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Internet Assignment Hands-On Cases IDEA and Tableau Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment Auditing Prepaid Expenses Inherent Risk AssessmentÑPrepaid Expenses Control Risk AssessmentÑPrepaid Expenses Substantive ProceduresÑPrepaid Insurance Substantive Analytical Procedures for Prepaid Insurance Tests of Details of the Prepaid Insurance Existence and Completeness Rights and Obligations Valuation Classification Auditing Intangible Assets Inherent Risk AssessmentÑIntangible Assets Control Risk AssessmentÑIntangible Assets Substantive ProceduresÑIntangible Assets Substantive Analytical Procedures for Intangible Assets Tests of Details of Intangible Assets Auditing the Property Management Process Types of Transactions Overview of the Property Management Process Inherent Risk AssessmentÑProperty Management Process Complex Accounting Issues Difficult-to-Audit Transactions Misstatements Detected in Prior Audits Control Risk AssessmentÑProperty Management Process Occurrence and Authorization Completeness Segregation of Duties Substantive ProceduresÑProperty, Plant, and Equipment Substantive Analytical ProceduresÑProperty, Plant, and Equipment Tests of Details of Transactions, Account Balances, and DisclosuresÑProperty, Plant, and Equipment Evaluating the Audit FindingsÑProperty, Plant, and Equipment Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Internet Assignments Hands-On Cases IDEA and Tableau Chapter 15: Auditing the Financing/Investing Process: Long-Term Liabilities, StockholdersÕ Equity, and Income Statement Accounts Auditing Long-Term Debt Inherent Risk AssessmentÑLong-Term Debt Control Risk AssessmentÑLong-Term Debt Assertions and Related Control Activities EarthWear Substantive ProceduresÑLong-Term Debt Auditing StockholdersÕ Equity Control Risk AssessmentÑStockholdersÕ Equity Assertions and Related Control Activities Segregation of Duties Auditing Capital-Stock Accounts Occurrence and Completeness Valuation Completeness of Disclosures Auditing Dividends Auditing Retained Earnings Auditing Income Statement Accounts Assessing Control Risk for Business ProcessesÑIncome Statement Accounts Substantive ProceduresÑIncome Statement Accounts Direct Tests of Balance Sheet Accounts Substantive Analytical Procedures for Income Statement Accounts Tests of Selected Account Balances Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Internet Assignment Hands-On Cases IDEA and Tableau Chapter 16: Auditing the Financing/Investing Process: Cash and Investments Auditing Cash Types of Bank Accounts General Cash Account Imprest Cash Accounts Branch Accounts Control Risk AssessmentÑCash Substantive ProceduresÑCash Substantive Analytical ProceduresÑCash Substantive Tests of Details of Transactions and BalancesÑCash Auditing the General Cash Account Fraud-Related Audit Procedures Auditing a Payroll or Branch Imprest Account Auditing a Petty Cash Fund Disclosure Issues for Cash Auditing Investments Control Risk AssessmentÑInvestments Assertions and Related Control Activities Segregation of Duties Substantive ProceduresÑInvestments Substantive Analytical ProceduresÑInvestments Tests of DetailsÑInvestments Advanced Module: Auditing Fair Value Measurements Understanding How Management Makes Fair Value Measurements Considering Whether Specialized Skills or Knowledge Is Required Testing the EntityÕs Fair Value Measurements Evaluating the Reasonableness of the Fair Value Measurements Key Terms Review Questions Multiple-Choice Questions Problems Internet Assignment Hands-On Case IDEA and Tableau Part 6: Completing the Audit and Reporting Responsibilities Chapter 17: Completing the Audit Engagement Review for Contingent Liabilities Audit Procedures for Identifying Contingent Liabilities Letters of Audit Inquiry Commitments Review of Subsequent Events for Audit of Financial Statements Dual Dating Audit Procedures for Subsequent Events Review of Subsequent Events for the Audit of Internal Control over Financial Reporting Final Steps and Evidence Evaluation Final Analytical Procedures Management Representation Letter Audit Work Paper Review Evaluation of Audit Results Evaluating Financial Statement Presentation and Disclosure Engagement Quality Review Archiving and Retention Going-Concern Considerations Communications with Those Charged with Governance and Management Communications Regarding the Audit of Internal Control over Financial Reporting Management Letter Subsequent Discovery of Facts Existing at the Date of the AuditorÕs Report Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Internet Assignments Hands-On Cases IDEA and Tableau Chapter 18: Reports on Audited Financial Statements Reporting on the Financial Statement Audit: The Standard Unqualified/Unmodified Audit Report The Standard Unqualified Audit Report for Public Companies Critical Audit Matters: More Information and Insight in the Audit Report The Standard Unmodified Audit Report for Entities Other Than Public Companies Explanatory Language Added to the Standard Unqualified/Unmodified Financial Statement Audit Report Explanatory Language to Refer to Reports of Other Auditors Substantial Doubt about the EntityÕs Ability to Continue as a Going Concern Lack of Comparability of Financial Statements between Periods Management Reports on ICFR but Audit of ICFR Not Required Circumstances in Which the Auditor Wishes to Emphasize a Matter Departures from an Unqualified/Unmodified Financial Statement Audit Report Conditions for Departure Types of Financial Statement Audit Opinions Other Than Unqualified/Unmodified The Effect of Materiality on Financial Statement Reporting Discussion of Conditions Requiring Other Types of Financial Statement Audit Reports Scope Limitation Statements Not in Conformity with GAAP Auditor Not Independent Special Reporting Issues Reports on Comparative Financial Statements Different Reports on Comparative Financial Statements A Change in Report on the Prior-Period Financial Statements Report by a Predecessor Auditor Other Information in Documents Containing Audited Financial Statements Special Reports Relating to Financial Statements Financial Statements Prepared According to Other Comprehensive Bases of Accounting Specified Elements, Accounts, or Items of a Financial Statement Compliance Reports Related to Audited Financial Statements The First Significant Change to the AuditorÕs Report in More Than 70 Years Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Hands-On Cases IDEA Part 7: Professional Responsibilities Chapter 19: Professional Conduct, Independence, and Quality Management Ethics and Professional Conduct Ethics and Professionalism Defined Theories of Ethical Behavior ExampleÑan Ethical Challenge An Overview of Ethics and Professionalism in Public Accounting A Tale of Two Companies Standards for Auditor Professionalism The AICPA Code of Professional Conduct: A Comprehensive Framework for Auditors Principles of Professional Conduct Rules of Conduct Integrity, Objectivity, and Independence Integrity and ObjectivityÑFramework, Rule, and Interpretations Independence Other Rules in the Code of Professional Conduct General Standards and Accounting Principles Confidential Information Fees and Other Types of Remuneration Acts Discreditable Advertising and Other Forms of Solicitation Form of Organization and Name Disciplinary Actions DonÕt Lose Sight of the Forest for the Trees Quality Management Standards The New Quality Management Paradigm Managing Quality on Audit and Attestation Engagements PCAOB Inspections of Registered Public Accounting Firms Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Internet Assignment Hands-On Cases Chapter 20: Legal Liability Introduction Historical Perspective Overview of Auditor Legal Liability Common LawÑClients Breach of ContractÑClient Claims NegligenceÑClient Claims FraudÑClient Claims Common LawÑThird Parties Ordinary NegligenceÑThird-Party Claims Fraud and Gross NegligenceÑThird-Party Claims Damages under Common Law Statutory LawÑCivil Liability Securities Act of 1933 Securities Exchange Act of 1934 Private Securities Litigation Reform Act of 1995, the Securities Litigation Uniform Standards Act of 1998, and the Class Action Fairness Act of 2005 Sarbanes-Oxley Act of 2002 SEC and PCAOB Sanctions Foreign Corrupt Practices Act Racketeer Influenced and Corrupt Organizations Act Statutory LawÑCriminal Liability Academic Research Regarding Audit-Related Litigation Key Terms Review Questions Multiple-Choice Questions Problems Discussion Cases Hands-On Cases IDEA Part 8: Assurance, Attestation, and Internal Auditing Services Chapter 21: Assurance, Attestation, and Internal Auditing Services Assurance Services Types of Assurance Services Attestation Engagements Types of Attestation Engagements Financial Forecasts and Projections Types of Prospective Financial Statements Examination of Prospective Financial Statements Agreed-Upon Procedures for Prospective Financial Statements Accounting and Review Services Preparation of Financial Statements Compilation of Financial Statements Review of Financial Statements Internal Auditing Internal Auditing Defined The Institute of Internal Auditors IIA Standards Internal AuditorsÕ Roles Interactions between Internal and External Auditors Advanced Module: An Example of An Assurance ServiceÑTrust Services Trust Services Trust Services and SOC 2 ̈, SOC 3 ̈, and SOC for Cybersecurity ̈ Reports Key Terms Review Questions Multiple-Choice Questions Problems Discussion Case Internet Assignments Hands-On Cases IDEA Appendix A: Professional Judgment FrameworkÑUnderstanding and Developing Professional Judgment in Auditing Appendix B: Data Analytics in the Audit Index