Assurance Service Letter
Assurance Services Letter
Martha Busko
ACC 546
January 24, 2011
Arlette Peoples
Assurance Services Letter
Dear Apollo Shoes:
Like most other accounting and auditing firms Biro’s and Sons CPAs offers assurance services. We offer several different assurance services, such as attestation which is mostly an audit, and Webtrust services. A Webtrust service is a type of attestation service Attestation on internal control over financial reporting and a review of historical financial statements are other examples of such attestation or audit service. In an audit of internal control over financial reporting a certified public accountant (CPA) or a team of CPAs look over the internal controls of the organization and the financial statements and make sure that the internal controls effectively mitigate risk and detect potential material misstatements in the financial statements. An audit of internal control over financial reporting is now required by the SEC so the benefit of having this done is you are in compliance with federal regulations. During the review of historical financial statements a cpa from the firm will attest to the accuracy of the financial statements being reviewed. This is beneficial because Investors are more likely to invest in your company because the financial statements have been reviewed by an independent viewer attesting to the accuracy of the financial statements. “To respond to the growing need for assurance related to business transacted over the Internet, the AICPA and the Canadian Institute of Chartered Accountants (CICA) jointly created the WebTrust assurance service. CPA firms that are licensed by the AICPA to perform this service provide assurance to users of Web sites through the CPA’s electronic WebTrust seal displayed on the Web site. This seal assures the user that the Web site owner has met established criteria related to business practices, transaction integrity, and information processes. WebTrust is an attestation
Martha Busko
ACC 546
January 24, 2011
Arlette Peoples
Assurance Services Letter
Dear Apollo Shoes:
Like most other accounting and auditing firms Biro’s and Sons CPAs offers assurance services. We offer several different assurance services, such as attestation which is mostly an audit, and Webtrust services. A Webtrust service is a type of attestation service Attestation on internal control over financial reporting and a review of historical financial statements are other examples of such attestation or audit service. In an audit of internal control over financial reporting a certified public accountant (CPA) or a team of CPAs look over the internal controls of the organization and the financial statements and make sure that the internal controls effectively mitigate risk and detect potential material misstatements in the financial statements. An audit of internal control over financial reporting is now required by the SEC so the benefit of having this done is you are in compliance with federal regulations. During the review of historical financial statements a cpa from the firm will attest to the accuracy of the financial statements being reviewed. This is beneficial because Investors are more likely to invest in your company because the financial statements have been reviewed by an independent viewer attesting to the accuracy of the financial statements. “To respond to the growing need for assurance related to business transacted over the Internet, the AICPA and the Canadian Institute of Chartered Accountants (CICA) jointly created the WebTrust assurance service. CPA firms that are licensed by the AICPA to perform this service provide assurance to users of Web sites through the CPA’s electronic WebTrust seal displayed on the Web site. This seal assures the user that the Web site owner has met established criteria related to business practices, transaction integrity, and information processes. WebTrust is an attestation
References: Arens, A., Elder, R. J., & Beasley, M. S. (2006). Auditing and assurance services an integrated approach (11th ed.). Upper Saddle River, New Jersey: Prentice Hall