Attestation Engagements

Question 1

Statements on Standards for Attestation Engagements

Answer 1

Includes examination engagements, reviews, and agreed upon procedures.
SSAEs are issued by AICPA’s Auditing Standards Board (ASB)

Question 2

Attestation engagement is one that a CPA is engaged to

Answer 2

Issue an examination, review, or agreed upon procedure to report on a subject matter or assertion about a subject matter that is the responsibility of a third party

Question 3

Characteristics of an Examination

Answer 3

Independence is required
High level of assurance
Documentation (working papers ARE required)
Type of report is an opinion
Almost identical to an audit, but FOCUS is not on financial statement data
If the engaging party is the responsible party, a written assertion is required

Question 4

Characteristics of a Review (Attestation Engagement)

Answer 4

Independence is required
Limited level of assurance
Documentation is required
Type of report determined by if a material modification is needed
Sufficient and appropriate evidence to support conclusion
If engaging party is the responsible party, written assertion is required

Question 5

Characteristics of Agreed-Upon Procedures

Answer 5

Independence is required
Documentation is required
No assurance but relates to findings of specific procedures
Type of report is findings of specific procedures
Written assertion is not required but lack of one is disclosed

Question 6

Differences between attestation standards and GAAS

Answer 6

Attestation standards provide a framework beyond historical financial statements
Practitioner expresses assurance below the level of an audit

Question 7

What is the primary objective of consulting services?

Answer 7

Provide the client with better outcomes through recommendations based on objectives of the engagement

Question 8

What is the primary objective of assurance and advisory services?

Answer 8

Enhance decision making by providing the client with better information