19. SSAEs - Examination, Review, and Agreed-Upon Procedures Engagements

Question 1

A practitioner is considering accepting an engagement to examine prospective financial statements (PFSs). If they include a projection that does not identify the hypothetical assumptions, the practitioner should

Answer 1

Not accept the engagement.

Question 2

What is an attestation engagement?

Answer 2

The practitioner is engaged to issue or does issue an examination, review, or an agreed-upon procedures report on subject matter (or an assertion about the subject matter in an examination or review) that is the responsibility of another party.

Question 3

The subject matter of an attestation engagement is best defined as

Answer 3

What is measured or evaluated against criteria.

Question 4

Who is usually the responsible party?

Answer 4

The client’s management.

Question 5

A practitioner may report on a review of pro forma financial information (PFFI) if the related historical financial statements have been

Answer 5

Reviewed or audited.

Question 6

When can a practitioner accept an engagement to apply agreed-upon procedures to prospective financial statements (PFSs)?

Answer 6

if the practitioner is independent and (1) the engaging party agrees to the procedures and takes responsibility for their sufficiency and (2) the statements include a summary of significant assumptions.

Question 7

A practitioner may report on an examination of pro forma financial information (PFFI) if the related historical financial statements have been

Answer 7

Audited.

Question 8

When can a practitioner accept an engagement to examine the financial projection on the responsible party?

Answer 8

(1) disclose the significant assumptions
(2) identify which assumptions are hypothetical
(3) describe the limits on the use of the projection