Different Types of Engagements Flashcards
Which of the following activities would most likely be considered an attestation engagement?
Consulting with management representatives of a firm to provide advice.
Issuing a report about a firm’s compliance with laws and regulations.
Advocating a client’s position on tax matters that are being reviewed by the IRS.
Preparing a client’s tax returns
Issuing a report about a firm’s compliance with laws and regulations.
This answer is correct because the attest standards provide for issuance of a report about a firm’s compliance with laws and regulations.
In performing an attestation engagement, a CPA typically
Supplies litigation support services.
Assesses control risk at a low level.
Expresses a conclusion about the assertion on the subject matter.
Provides management consulting advice.
Expresses a conclusion about the assertion on the subject matter.
This answer is correct because, when performing an attest engagement, a CPA expresses a conclusion about the assertion on the subject matter.
Which of the following professional services would be considered an attest engagement?
A management consulting engagement to provide computerized advice to a client.
An engagement to report on compliance with statutory requirements.
An income tax engagement to prepare federal and state tax returns.
An engagement to prepare the tax returns of the company’s CEO.
An engagement to report on compliance with statutory requirements.
This answer is correct because a report on compliance with statutory requirements might be structured as an attest engagement in which the required “written assertion” relates to such compliance.
An entity engaged a CPA to determine whether the client’s web sites meet defined criteria for standard business practices and controls over transaction integrity and information protection.
In performing this engagement, the CPA should comply with the provisions of
Statements on Assurance Standards.
Statements on Standards for Attestation Engagements.
Statements on Standards for Management Consulting Services.
Statements on Auditing Standards.
Statements on Standards for Attestation Engagements.
The type of engagement described is a WebTrust assurance engagement. It is performed in accordance with the Statements on Standards for Attestation Engagements.
An attestation engagement is one in which a CPA is engaged to:
Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party.
Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.
Testify as an expert witness in accounting, auditing, or tax matters, given certain stipulated facts.
Assemble pro forma financial statements based on the representations of the entity’s management without expressing any assurance.
Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party.
An attestation engagement is one in which the practitioner is engaged to issue an examination, a review, or an agreed-upon procedures report on subject matter or an assertion about subject matter that is the responsibility of another party.
