University of Kansas Woosa LLP Analysis

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Introduction Any firm needs credibility within its financial statements. There are three primary means to prove credibility in a company, namely review, compilation, and audit with the latter being the most recognized alternative1. However, this memo will concentrate on audit and review. The objective of an audit is to enhance the level of confidence of internal use within the financial statements. An audit of financial records aims enable a practitioner to confirm if there is something that makes the auditor believes that the financial records are not organized in accordance with the appropriate financial planning structure. This memo aims to talk about the difference between review and audit regarding the level of assurance and the nature of differences for each kind of service. Level of Assurance Reviews offer a limited degree of assurance that there are no material adjustments that must be done to the financial statements2. Review comprises inquiry and systematic review of figures. A review is best summed up as what one does to make numbers create sense. On the other hand, audit has the highest level of assurance accountants' offer. Audit comprises acquiring an understanding of internal regulation, assessing fraud threat, and getting proof to support the numbers through inspection, observation, the examination of confirmation of source documents. 1 AICPA, (2008). Analytical Procedures - AICPA Audit Guide. New York: American Institute of Certified Public Accountants 2 AICPA (2008). Analytical Procedures - AICPA Audit Guide. New York: American Institute of Certified Public Accountants Reports Provided Under review, there is no assurance given to the user of financial records except that negative declaration assertion is offered to assert that the auditor is not conscious of any books adjustments that must be done to the financial records3. On the contrary, in audit, there is no assurance given to the financial reports user’s apart from positive assurance assertion. The auditor offers an opinion on whether financial records fairly present the financial position, the outcomes of operations, and the cash flows of a company. Nature of audit Processes Review performs an inquiry as well as analytical procedures whereby there are no verification and substantiation procedures4. On the other hand, in audit, an inquiry and systematic procedure are carried out to acquire a comprehending of the company's internal control and evaluate fraud threat. Moreover, verification and substantiation process is carried out under audit. Conclusion Review denotes an assessment of financial statements done by the auditor to establish if there is any chance of adjustments or not. However, audit indicates the systematic and intelligent evaluation of financial statements of a business to confirm if they present a true and fair view of the business. Review has a limited level of assurance, while audit has the highest level of 3 AICPA, (2008). Analytical Procedures - AICPA Audit Guide. New York: American Institute of Certified Public Accountants 4 AICPA, (2008). Analytical Procedures - AICPA Audit Guide. New York: American Institute of Certified Public Accountants assurance. Review offers negative assurance assertion, but audit provides a positive assurance assertion. End Notes AICPA, (2008). Analytical Procedures - AICPA Audit Guide. New York: American Institute of Certified Public Accountants
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Attached.

Running head: AUDITING WRITING ASSIGNMENT

Auditing Writing Assignment
Name
Institutional Affiliations

1

AUDITING WRITING ASSIGNMENT

2

Proposal to Provide Audit Services
Dear Apple Co.,
We are pleased to offer our audit services alongside other financial products and services at the
Woosa LLP. Within the necessary liaisons and protocols, the organizations finds its interests in
providing its review and auditing services. According to various relevant media communications
and publications, the Woosa LLP finds it a lucrative chance to showcase its ability to offer
transparent and accurate audit service in light of the company’s oncoming loan procurement.
This proposal is therefore in due response to all the necessary communications including the
Request for Proposal (RFP) pending implementation...


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