Audit, Attestation and Assurance Analytical Essay
Audit, Attestation and Assurance
Defines and differentiates the accounting processes of assurance, attestation and auditing.
# 147472 | 1,195 words | 3 sources | APA | 2010 |
Published on Apr 21, 2011 in Business (Accounting) , Accounting (General)
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This paper first explains that, since the preparers and issuers of financial statements often have an inducement to overstate the financial health of the business entity, users of these reports require a third party to ensure their trustworthiness. Next, the author presents the professional accounting progression from assurance that gives credibility to the report, to the position of attestation when assurance is provided and then to the final state of auditing as these assertions are exemplify in a company's financial statements. The paper underscores the importance of the Sarbanes-Oxley Act of 2002, which created an increased level of oversight and accountability by the accounting profession and managers of an organization and of diligence by their investors and creditors.
From the Paper:"The Public Companies Accounting Oversight Board (PCAOB) sets standards for audits, independence, ethics, and quality control for all public companies. The PCAOB was created by the Sarbanes-Oxley Act of 2002. The Securities and Exchange Commission governs the financial reporting of public companies. Further the Financial Accounting Standards Board or FASB sets the standards for Generally Accepted Accounting Standards (GAAP). The FASB was created in 1973, and the SEC charged them with setting all GAAP standards. The GASB, Governmental Accounting Standards Board, sets all standards for governments."
Sample of Sources Used:
- Boynton, W.C. & Johnson, R. N., (2006). Modern auditing: assurance services and the integrity of financial reporting. [University of Phoenix Custom Edition e-text]. Retrieved April 20, 2010, from University of Phoenix, rEsource, ACC491 - Contemporary Auditing I Course Web site.
- Bushman, M. (2007). Accounting and auditing: An overview of attestation services. Retrieved May 1, 2010, from http://www.associatedcontent.com/article/489685/accounting_and_auditing_an_overview_pg2.html?cat=3
- Louwers, T. J., Ramsay, R. J., Sinason, D. H. & Strawser, J. R., (2007). Auditing and assurance services. [University of Phoenix Custom Edition e-text]. Retrieved April 20, 2010, from University of Phoenix, rEsource, ACC491 - Contemporary Auditing I Course Web site.
Cite this Analytical Essay:
Audit, Attestation and Assurance (2011, April 21) Retrieved June 09, 2023, from https://www.academon.com/analytical-essay/audit-attestation-and-assurance-147472/
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