Case Tae Kwang Vina

1. How is competitive competitive bidding, bidding, advertising, advertising, direct direct solicitatio solicitation n and related related practices related to the declining value of independent audit product? 2. What What are are the the cred creden enti tial als s that that make ake one one prac practi titi tion oner er capa capabl ble e of  performing non-traditional services? 3. What are are the characteri characteristics stics of a person person assigned to the eami eaminatio nation n of  environmental and labor practices? !oes an accountant "ualif# for this engagement? $. %re there there an# standard standard criteria& criteria&pro procedur cedures, es, laws, labor regulation regulations' s' to ascer ascertai tain n the degr degree of corre correspo sponde ndence nce with with its (nding (ndings? s? What What are are those and o dd))m) n whose )urisdiction should a practitioner follow? *ummar#+

uestions+

1. Defne each o the ollowing types o proessional services: consulting services, attestation services, agreed-upon procedures engagements and assurance services. Explain how, i at all, these services overlap. a.' Consulting ervicesis a professional service in which a % develops (ndings, conclusions and recommendation based on the practitioner technical skills, knowledge, observations, education and eperiences of the consulting process that are presented to the client for considerations and decision making. b.' !ttestation services- is a professional service in which a % epresses a written opinion of the reliabilit# of the assertion that is the responsibilit# of the client. /nder attestation services, evaluation of the sub)ect matter would have alread# been conducted b# the client against a criteria and this evaluation would be con(rmed b# the practitioner if fairl# presented or not. c.' !greed-upon procedures engagements-is a professional service in which a practitioner engage to report on factual (ndings based on the agreed-upon procedures with the client. d.' !ssurance services-is a professional service in which a % epresses an opinion with regards to the evaluation of the sub)ect matter. 0n m# own point of view, these t#pes of professional services ma# overlap. or instance, attestation services and assurance services are terms that are used interchangeabl# because both practitioner in these t#pe of service epresses an opinion that improve the information or the contet of information so that decision makers ma# make more informed and better decisions. 0t would not be misleading to sa# that all attestation services are assurance services but not ever# assurance service is an attestation service. his is because assurance service is a broader term and concept compared to attestation service. 0n auditing, attestation is onl# a subset of assurance engagement. herefore, assurance service is  )ust an# services such as reviews and compilation services that provide independent and professional opinion that reduces the risk from incorrect information. urthermore, the above-mentioned professional services engage a practitioner to develop (ndings. he dierence onl# lies on its treatment along with service provided. 0n consulting, the practitioner will develop conclusions and recommendations based on the (ndings conducted. 0nformations found in attestation and assurance service shall be used to

evaluate the degree of correspondence with an established criteria. 0n agreed-upon procedures engagement, the client shall make comparison between the epected results and practitioner4s report.

". #isit the we$sites o the ma%or international accounting frms. &dentiy nontraditional services currently mar'eted $y these frms. (ist several o these services and $rie)y descri$e their nature. *  the services you identifed, are there any that you $elieve accounting frms should not provide+ & so, explain. a. orensic !ccounting ervices-orensic accounting services generall# involve the application of speciali5ed knowledge and investigative skills possessed b# %s to collect, anal#5e and evaluate data and evidential matter. orensic accounting services utili5e the %4s speciali5ed accounting, auditing, economic, ta, fraud detection and other skills to perform various t#pes of investigations, and to communicate (ndings in a courtroom or administrative setting. orensic accounting services include litigation support, bankruptc# support, fraud and special investigations, dispute resolution, among man# other services.

b.' Wealth 6anagement *ervices- Wealth management is a high-level professional service that combines (nancial7investment advice, accounting7ta services, retirement planning and legal7estate planning for one fee. lients work with a single wealth manager who coordinates input from (nancial eperts and can include coordinating advice from the client8s own attorne#, accountants and insurance agent. *ome wealth managers also provide banking services or advice on philanthropic activities.

c.ro'er-Dealer ervices- % broker-dealer is a person or (rm in the business of bu#ing and selling securities, operating as both a broker and a dealer, depending on the transaction. he term broker-dealer is used in /.*. securities regulation parlance to describe stock brokerages, because most of them act as both agents and principals. % brokerage acts as a broker &or agent' when it eecutes orders on behalf of clients, whereas it acts as a dealer &or principal' when it trades for its own account.

d. /ax 0lanning  Compliance ervices-hese nontraditional services engage the (rm to keep abreast of all current ta legislation and being alwa#s available to provide guidance on issues that ma# aect a business. 0t re"uires a thorough knowledge of both domestic and foreign corporate ta law which can be an invaluable asset in an# discussion or situation regarding ta issues. e. 2uman 3esource Consulting ervices-  roviding strategies and recommendations to eectivel# manage human resources as the most valuable asset of a compan#. his consulting service provide assistance to recruiting, bene(t plans, compensations plans, polic# 9 procedure manuals, management training 9 development, training programs and insurance of emplo#ees.

f.' :ease urchase %nal#sis *ervices- :ease urchase %nal#sis *ervices involves the anal#sis of lease or bu# decisions as well as other (nancial aspects of the potential purchase speci(call# the ta considerations.

g.' :itigation *upport *ervices- :itigation *upport *ervices includes assisting legal counsel in determining necessar# and important discover# documents, evaluating the opposing epert witness and work product, assisting legal counsel in prioriti5ing case strategies relative to probable damage areas and amounts and in developing lists of "uestions to ask opposing epert.

 hese are the list of non-traditional services that accountants are not "uali(ed to perform.

1. ;roker-dealer services- the risks associated when these services is provided b# appointed % (rm of the client is that there is a possibilit# that the (rm ma# not disclose material con