Question

Task • Discuss the following statement "Attestation standards are similar to the fundamental auditing principles, however, some important differences exist"

Answer 1

Attestation standards are similar to principles of auditing as The attestation standards establish requirements for performing and reporting on examination, review, and agreed-upon procedures engagements that enable practitioners to report on subject matter which is quite similar to the principles of auditing , which states that the audit should be conducted with independence of mind and stature .The principles of auditing also establish requirements for performing and reporting an examination , review and thus express opinion thereon on the financial information of the company whether they are in all material respects , in accordance to the financial reporting framework or otherwise

However,

Attestation standards and principles of auditing differ in some sense as

• There are six important auditing principles

1. Integrity: foundation of professionalism.
   2. Fair presentation: obligation to report truthfully and accurately.
   3. Due professional care: application of diligence and judgment in auditing.
   4. Confidentiality: security of information.
   5. Independence: basis for impartiality of audit and objectivity of audit conclusions.
   6. Evidence-based approach: rational method for reaching reliable and reproducible audit conclusions in a systematic audit process.

Which are all related to requirements on audit of financial statements however the attestation standards state about the requirements other than financial statements, for example, an entity's compliance with laws or regulations

• Attestation standards do not focus on opinion expressed thereon and related to just reporting where as auditing principles state about the requirements of reporting as well as expressing an opinion thereon
• Audit is independent examination of financial and none financial information in order to issue opinion on their compliance with suitable criteria. Audit can be internal or external audit. Audit is one form of assurance engagement.On other hand attestation is a type of assurance engagement in which audit verify the report prepared by management such as financial statement to see if they clearly represent what they purport to represent. It is process of verifying working of process, system or performance of the entity and its position through report prepared by management rather than going straight to them. It differ from direct reporting engagement in which auditor directly report of condition of process, system or performance and position of the entity rather than through report prepared by management.