Financial statement audits- different types of engagements

Question 1

different levels of assurance

Answer 1

1. Audit-highest level
2. Review-moderate level of assurance
3. Compilation-provides no assurance

Question 2

Statements on Standards for Accounting and Review Services

Answer 2

SSARS

Question 3

SSARS are possible when____

Answer 3

These are applicable when the CPA is associated with the financial statements of a private company, but that association is something less than a full-scope “audit” engagement.

or

Statements on standards for accounting and review services (SSARS)-apply when the accountant provides either compilation or review services related to F/S of private companies.

Question 4

2 types of assurance

Answer 4

positive assurance- highest level, associated with an audit

negative assurance-moderate level. associated with a review

assurance expressed as procedure finding for an agreed upon procedures engagement under the attestation standards. neither positive nor negative.

no assurance- express no conclusions to its reliability

Question 5

attestation

Answer 5

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.