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AUD NINJA > Attestation Engagements (SSAE) > Flashcards

Attestation Engagements (SSAE) Flashcards

1
Q

What are types of an attestation engagement?

A

Examination
Review
Agreed-Upon Procedures

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2
Q

What level of assurance does an examination engagement provide?

A

Positive assurance

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3
Q

What level of assurance does a review engagement (SSAE) provide?

A

Limited assurance (negative assurance)

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4
Q

What level of assurance does an agreed-upon procedures engagement provide?

A

No assurance

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5
Q

Is independence required for an examination engagement?

A

Yes independence is required

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6
Q

Is independence required for a review engagement (SSAE)?

A

Yes independence is required

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7
Q

Is independence required for an agreed-upon procedures engagement?

A

Yes independence is required

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8
Q

What are the key procedures of an examination engagement?

A

Procedures comparable to audits of historical FS.
Comprehensive testing and verification of information.

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9
Q

What are the key procedures of a review engagement (SSAE)?

A

Inquiry and analytical procedures

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10
Q

What are the key procedures of an agreed-upon procedures engagement?

A

Procedures are performed as agreed-upon by practitioner and client.

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11
Q

What is the reporting outcome of an examination engagement?

A

Expression of an opinion providing reasonable assurance.
Asserts that the subject matter is fairly presented, in all material respects.

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12
Q

What is the reporting outcome of a review engagement (SSAE)?

A

Expression of a conclusion providing limited assurance.
Indicates whether any material modifications should be made to the subject matter.

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13
Q

What is the reporting outcome of an agreed-upon procedures engagement?

A

List of procedures performed and findings obtained.
No opinion or conclusion is expressed.

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14
Q

Is there a usage restriction on an examination engagement?

A

May be restricted if criteria are suitable for or available to a limited number of parties.

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15
Q

Is there a usage restriction on a review engagement (SSAE)?

A

May be restricted if criteria are suitable for or available to a limited number of parties.

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16
Q

Is there a usage restriction on an agreed-upon procedures engagement?

A

Typically restricted to specified users who have agreed to the procedures.

17
Q

Who is responsible for the sufficiency of procedures of an examination engagement?

A

Practitioner is responsible for the sufficiency of the procedures.

18
Q

Who is responsible for the sufficiency of procedures of a review engagement (SSAE)?

A

Practitioner is responsible for the sufficiency of the procedures.

19
Q

Who is responsible for the sufficiency of procedures of an agreed-upon procedures engagement?

A

Client is responsible for the sufficiency of the procedures; Practitioner disclaims responsibility.

20
Q

What are examples of an examination engagement?

A

Prospective FS: examination of forecasts and projections to provide an opinion on their reasonableness.
Pro-forma FS: examination of FS adjusted to reflect hypothetical situations.
Compliance: examination of an entity’s compliance with specified requirements
MD&A: examination of the narrative explanation provided by the management on the entity’s financial performance
Internal Controls - Trust Services: examination of controls related to security, availability, processing integrity, confidentiality, or privacy.
Internal Controls - ICFR: examination of controls at a service organization relevant to user entities’ internal control over financial reporting

21
Q

What are examples of a review engagement (SSAE)?

A

Pro-forma FS: review of FS adjusted for hypothetical events to provide limited assurance
MD&A: review of management’s discussion and analysis to provide limited assurance on the narrative explanation of financial performance.

22
Q

What are examples of an agreed-upon procedures engagement?

A

Prospective FS: performing agreed-upon procedures on forecasts and projections without providing assurance.
Compliance: performing specific procedures to test compliance with specified requirements without providing assurance.

23
Q

What type of attestation engagement is allowed on prospective financial statements?

A

Examination & agreed-upon procedures

24
Q

What type of attestation engagement is allowed on pro-forma financial statements?

A

Examination & review

25
Q

What type of attestation engagement is allowed on compliance?

A

Examination & agreed-upon procedures

26
Q

What type of attestation engagement is allowed on MD&A?

A

Examination & review

27
Q

What type of attestation engagement is allowed on Internal Controls at Service Organization - Trust Services?

A

Examination

28
Q

What type of attestation engagement is allowed on Internal Controls at Service Organization - relevant to user entities’ internal control over financial reporting?

A

Examination

29
Q

What are the two types of prospective financial statements?

A

Forecast
Projection

30
Q

What is a forecast?

A

It is a type of prospective financial statement.
Presents an entity’s expected financial position, results of operations, and cash flows.
AUP engagement.

31
Q

What is a projection?

A

It is a type of prospective financial statement.
Financial statements that presents, given one or more hypothetical assumptions, an entity’s possible financial position, results of operations, and cash flows.
Examination & AUP engagements.

32
Q

What is required in the report on prospective financial statements?

A

A statement that the prospective results may not be achieved.
Statement indicating the practitioner has no responsibility to update the report for events and circumstances occurring after the report date.
Restricted use paragraph.
Summary of significant assumptions.

33
Q

What are proforma financial statements?

A

Proforma FS are prepared to illustrate the effects of significant events or transactions on an entity’s historical FS, as if the event had occurred at an earlier date.

34
Q

What is included in the report on proforma financial statements?

A

Reference to historical FS
Management’s assumptions
Objectives & limitations

35
Q

What is a compliance attestation engagement?

A

Compliance attestation engagements are conducted to attest whether an entity has complied with specific laws, regulations, contracts, or grants.

36
Q

What are the requirements for compliance attestation engagements?

A

Obtain a thorough understanding of the specified requirements with which the entity must comply.
Obtain an understanding of the relevant portions of the entity’s internal control over compliance.
Practitioners must request a written representation letter from management.

37
Q

What is included in the report on compliance?

A

Should clearly identify the specified requirements against which compliance was measured or evaluated.
Statement clarifying that the examination does not provide a legal determination of the entity’s compliance with specified requirements.

38
Q

What are the requirements for MD&A attestation engagements?

A

Understanding of SEC rules & regulations
Understanding of the entity and its environment
Review of FS
Inquiries and analytical procedures

AUD NINJA (14 decks)

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