Attestation Standards- Common Concepts

Question 1

A written assertion is expected by the responsible party when the engaging party is the responsible party?

Answer 1

TRUE

Question 2

If the responsible party refuses to give a written assertion for an examination or review, what should the auditor do?

Answer 2

Withdrawal

Question 3

If the responsible party refuses to give a written assertion for an AUP engagement, what should the auditor do?

Answer 3

Disclose that in the report

Question 4

When the responsible party (NOT THE ENGAGING PARTY) refused to provide a written assertion for a examination or review engagement, what should the auditor do?

Answer 4

Disclose that in the report and restrict the report to the engaging party

Question 5

What are interpretive publications?

Answer 5

Consider recommendations on the application of SSAE

Not requirements

Includes: Journal articles, may be helpful, have no authoritative status

Question 6

What are the three preconditions for an attestation engagement?

Answer 6

1) Partitioner must be independent
2) Responsible party must take responsibility for subject matter

3) The engagement must have 4 specific characteristics
- Subject must be appropriate
- Criteria is suitable and available
- Practitioner expects to obtain support to give an opinion
- Opinion must be expressed in a written report

Question 7

What is appropriate subject matter?

Answer 7

Capable of being measured

subject to performing procedures to obtain a conclusion

Question 8

If the subject matter is not appropriate for an examination is it appropriate for a review?

Answer 8

NOPE

Question 9

What does suitable and amiable criteria mean?

Answer 9

• Relevant to the subject matter
• Free from bis
• Permit reasonable consistent measurement
• Complete- not omit relevant factors

Question 10

What if the preconditions are not met, what should happen?

Answer 10

Attempt to resolve the issues with the engagement party

Determine whether it is okay to continue forward with the engagement or to end the deal right there

Question 11

T/F: A practitioner should not accept an engagement unless an understanding of the terms has been established?

Answer 11

TRUE- You need to communicate the preconditions of the audit or engagement

Question 12

If there are changes in the terms of the engagement, there needs to be “reasonable justification”

Answer 12

TRUE

Question 13

If we use “other practitioners” we need to do what…?

Answer 13

1) obtain an understanding of independence and competence

2) Decide whether to reference in the report