Chapter 21 Assurance, Attestation, and Internal Auditing Services 767DISCUSSION CASELO 3,4,5,6b....

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Chapter 21 Assurance, Attestation, and Internal Auditing Services 767
DISCUSSION CASE
LO 3,4,5,6
b. Because the Juns' concerns do not relate to areas of your expertise as a CPA, explain to them how you will be able to provide assurance on the care providers.
21-38 The accounting profession is concerned about whether companies are in compliance with various federal and state environmental laws and regulations and whether they have reported environmental liabilities in their financial statements. Environmental auditing typically refers to the process of assessing compliance with environmental laws and regu-lations, as well as compliance with company policies and procedures. SSAE No. 10, Chapter 6, "Compliance Attestation," allows a practitioner to perform agreed-upon procedures to assist users in evaluating manage-ment's written assertions about (1) the entity's compliance with specified requirements, (2) the effectiveness of the entity's internal control over compliance, or (3) both.
Required: a. Discuss how a practitioner would conduct an agreed-upon procedures engagement to evaluate an entity's written assertion that it was in compliance with its state's environmental laws and regulations. b. Assume that this same entity maintained an internal control system that monitored the entity's compliance with its state's environmental laws and regulations. Discuss how a practitioner would evaluate the effectiveness of the entity's internal control over compliance
INTERNET ASSIGNMENTS
LO XXXXXXXXXXThe IIA maintains its own website containing useful information about the Institute and the internal auditing profession in general. Visit the IIA's home page (www.theiia.org).
Required: a. Under the tab "Periodicals," follow the link to the official magazine of the IIA (Internal Auditor). What is the mission of this respected publication? b. Although the IIA does not require that its members obtain CIA cer-tification, it is becoming popular worldwide. What advantages are afforded to those who certify, according to the IIA's website? Who might benefit from the CIA designation? LO XXXXXXXXXXThe AICPA has developed an assurance service related to electronic com-merce called WebTrust. Visit the WebTrust home page (www.webtrust. org) and examine the WebTrust seal.
Required: a. Under the overview of Trust Services section, find and list the four broad areas that the Trust Service principles are organized into. b. On that same page, there is a heading: "Need for Trust." List two rea-sons given in that section for why trust in online transactions is an issue today.

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David · Accepted Answer

Answer to Question No 21-38(a) 
As per SSAE No 10 based on Compliance Attestation by the auditors on the environmental 
engagements related to an entity’s compliances based on the written representation presented by 
the client. The AT Section 601 provides for these rules which are to be followed in order to state 
the agreed upon procedures that are to be followed by the practitioner in order to ascertain that 
the written assertion by the entity is in compliances with the rules and regulations being formed 
by the state. The fact is that Attestation Standard no 10 has overcome all the previous 
engagements on assertion procedures to be followed by the practitioners. It states that the certain 
criteria’s chosen by the client should be properly ascertained and follow agreed upon 
engagements by the auditor. The main role of the auditor under this standard is to follow agreed 
upon engagements the entity’s is in compliance with the state laws and requirements, the 
effectives of the internal control system over compliances and both the above together also. The 
main concept on which the assertions to be followed by the practitioner is based on the 
expectations of users using this written representation.  As the users are the deciders of these 
procedures it will be in the best of interests of the practitioner and the client to have agreed upon 
engagements rather than follow examining engagements. And even if the examination approach 
is followed certain risks are to be considered by the practitioner. The agreed upon engagements 
are performed to an entity’s compliances if the following condition exists:- 
a) The responsible party accepts responsibility for the entity's compliance with specified 
requirements and the effectiveness of the entity's internal control over compliance. 
b) The responsible party evaluates the entity's compliance with specified requirements or the 
effectiveness of the entity's internal control over compliance. 
In order of engagements the auditor should obtain a separate report and a representation to the 
practitioner. The steps that are to be followed are as follows:

Chapter 21 Assurance, Attestation, and Internal Auditing Services 767 DISCUSSION CASE LO 3,4,5,6 b. Because the Juns' concerns do not relate to areas of your expertise as a CPA, explain to them how...

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