Explore BrainMass

Explore BrainMass

    Memo in preparation for the 2005 year end audit of CSSC

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Create a memo that is on a business or professional level. I have the definitions needed and I know the relationship between the three.

    I have attached my definitions and the scenario of the company

    In preparation for the CSSC 2005 year-end audit, you want to have a complete understanding of the relationship between accounting, auditing, and assurance services. Create a memo for your team with the following information:

    Give the definition of accounting, auditing, and assurance services.
    Explain the relationship between accounting, auditing, and assurance services.
    Provide an example of accounting, auditing, and assurance services related to CSSC.

    © BrainMass Inc. brainmass.com June 3, 2020, 9:46 pm ad1c9bdddf


    Solution Preview

    Memo to the audit team
    2005 Financial Audit of CSSC

    In preparation for the year-end financial audit, it might be a good opportunity to review some terms and procedures, followed by a discussion of the value of other services which can be performed to benefit our client.

    The Accounting Information Systems (AIS) are designed to capture, record, summarize and report financial data and supporting information. One of the initial audit functions for our team is to understand the systems that operate within CSSC. Not only should we understand their accounting system, but in a broader perspective, we must understand the nature of their business including their revenue sources and typical expenses germane to their industry.

    With that basic understanding, the audit team can begin the process of evaluating the system of internal control as it applies to accounting applications. Auditors tend to focus on transaction systems which then provide a basis upon which to evaluate risk. Audit risk could result in a material deficiency in internal control. The evaluation of the effectiveness of the accounting systems ...

    Solution Summary

    The cited solution is presented in memo format with the first few paragraphs providing the definitions and relationships between accounting, auditing and assurance services. Second, the memo offers insight into services available from the CPA firm which might benefit CSSC. The last section suggests five ideas which could general additional work for the audit firm listed after a cursory review of the internal financial statements.