attestation standards

Question 1

attest engagement def

Answer 1

when a cpa practicioner is engaged to issue (or does issue) an examination, a review, or an agreed upon engagement report on subject matter, or an assertion about subject matter that is the responsibility of another party.

Question 2

attestation is different than audit because

Answer 2

subject matter differs (something differ than historical f/s)
procedures and measurement criteria are more negotiable.

Question 3

attestation is

Answer 3

examination
review
agreed upon procedures

Question 4

11 attestation standards. they have 3 categories such as

Answer 4

general standards (TKCID)
Fieldwork standards (PE)
Reporting Standards (NCRL)

Question 5

the general standards are

Answer 5

Technical training in the attest function

Knowledge in the subject matter of assertion

Criteria - suitable and available (the practicioner must have reason to believe that the subject matter is capable of evaluation against criteria that are suitable and available to others.

Independence - independence in mental attitude in all matters

Due professional care- planning perfromance, preparation

Question 6

The fieldwork standards are

Answer 6

planning and supervision

evidence

Question 7

Reporting Standards

Answer 7

Nature of engagement
Conclusions
Reservations-if any reservations then must be expressed
limited use- (when restricted to specific parties)

Question 8

SSAEs (statement standards for attestation agreements)

Answer 8

the SSAEs are interpretations of the attestation standards and must be followed by practitioners

Question 9

Interpretations

Answer 9

practitioners should be prepared to explain compliance with SSAEs when not applying applicable interpretations

Question 10

other attestation publications

Answer 10

have no authority (journal articles etc)

Question 11

attestation Hierarchy

Answer 11

1. SSAEs
2. Interpretations
3. other attestation publications

Question 12

positive assurance (low level of attestation risk)

Answer 12

as to presentaion- qualified or adverse
as to scope-qualified or disclaimer

can always add a explanatary paragraph for emphasis of a matter

Question 13

review results in negative assurance (moderate level of attestation risk)

Answer 13

report should report any material deficiencies.

must report a disclaimer of opinion since the review provides less assurance than an examination

Question 14

a report called “agreed upon procedures”

Answer 14

neither negative or positive assurance. procedures performed on their behalf. specified parties must take responsibility for procedures performed on their behalf.

the conclusions are expressed in terms of “procedure findings”

no assurance given so must disclaim an opinioin

must limit distribution to specified parties

Question 15

agreed upon procedures are

Answer 15

LIMITED DISTRIBUTION OR RESTRICTED DISTRIBUTION