【正文】 and must be petent to know the types and amount of evidence to accumulate to reach the proper conclusion after the evidence has been examined. The petence of the individual performing the audit is of little value if he or she is biased in the accumulation and evaluation of evidence. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 11 Distinguish Between Auditing and Accounting Accounting is the recording, classifying, and summarizing of economic events for the purpose of providing financial information used in decision making. Auditing is determining whether recorded information properly reflects the economic events that occurred during the accounting period. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 15 Causes of Information Risk ? Remoteness of information ? Biases and motives of the provider ? Voluminous data ? Complex exchange transactions 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 19 Attestation Services An attestation service is a type of assurance service in which the CPA firm issues a report about the reliability of an assertion that is the responsibility of another party. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 23 AICPA Assurance Services The AICPA formed the Special Committee on Assurance Services (SCAS). 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 27 Nonassurance Services Provided by CPAs 1. Accounting and bookkeeping services 2. Tax services 3. Management consulting services 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 31 Other Assurance Services Examples Fraud and illegal acts risk assessment… developing fraud risk profiles and assessing the adequacy of pany systems and policies in preventing and detecting fraud and illegal acts. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 35 Learning Objective 6 Differentiate the three main types of audits. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 39 Audit of Historical Financial Statements Example Annual audit of Boeing’s financial statements Information Boeing39。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 42 Learning Objective 8 Describe the requirements for being a CPA. 16