Chapter 19, Problem 19.31P

To determine

Concept Introduction:

Audit procedure is a method performed by the auditorto gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To describe:The services that P may perform or may not perform.

• The services that may perform: As per the American Institute of certified public accountant code, the CPA should supervise the operation of the new system because the entity requests to set up a new system or covert the prior one into the new system. And the CPA should monitor the source document prepared by entity and also make changes in the IT generated data as the entity asks to involve the implementation of IT information in audit services.
• The services that may not be performed: As per American Institute of certified public accountant code, the services which CPA should not be performing are Counsel on the potential expansion of business activity plans, Search for interview of new personnel, Hiring, and Training personnel as there is no requirement of new personnel.