After completing this chapter, you should understand:
• The types of assurance and consulting services and the applicable standards.
• The environment for the assurance services standard-setting process.
• Authoritative auditing support.
• The Public Company Accounting Oversight Board (PCAOB).
• How to utilize the AICPA’s Professional Standards in research.
• The role of auditing in the public sector.
• The hierarchy of the AICPA Code of Professional Conduct.
• The role of professional judgment and skepticism in the research process.
• International dimensions of auditing.
Because information technology has had a significant impact on the accounting profession and society in general, the public accounting profession has focused on its willingness and ability to design and offer additional value-added services, in addition to such traditional services as tax preparation and auditing. Technological changes have encouraged accounting professionals to transform from number crunchers and certifiers of information to decision support specialists and enhancers of information. Many professionals who keep abreast of the major changes in the profession and technology have adapted their practices and market orientation to these new value-added assurance services. Some practitioners are also expanding the area of consulting services offered to clients. As a result, the ...