Simulation 1.2 Flashcards
Audit
Positive assurance.
Compilation
No assurance.
Agreed-upon procedures
No assurance.
Review
Limited assurance.
Examination
Positive assurance.
Preparation
No assurance.
Requires accounting firms to appropriately consider the risk of providing services
SQCSs - Statements on Quality Control Standards
Issued by the AICPA to set guidelines for performing a compilation
SSARS - Statements on Standards for Accounting and Review Services
Mandates that a second partner review and approve audit reports
SOX - Sarbanes-Oxley Act of 2002 GAAS - Generally Accepted Auditing Standards
Defines the process of undertaking an audit engagement for nonissuers
GAAS. GAAS (SASs) are issued by the ASB, the senior technical committee of the AICPA designated to issue standards on auditing matters for nonissuers. The Compliance with Standards Rule of the Code of Professional Conduct requires an AICPA member who audits a nonissuer to comply with GAAS.
Requires the accountant to have reason to believe that the assertion is measurable in terms that are suitable to the users of the assertion
SSAEs - Statements on Standards for Attestation Engagements
A practitioner must have reason to believe that the subject matter is capable of evaluation against criteria that are suitable and available to users.
Describes six elements the CPA firms must consider
SQCSs - Statements on Quality Control Standards
Defines audit requirements for issuers
SOX
The accountant makes recommendations based on the objectives of the engagement
SSCSs - Statements on Standards for Consulting Services
Statements on Standards for Consulting Services describe responsibilities of a practitioner who develops findings, conclusions, and recommendations based solely on the agreement with the client. The work ordinarily is only for the use and benefit of the client.
Issued by the AICPA to set guidelines to offer limited assurance on historical financial statements
SSARS - Statements on Standards for Accounting and Review Services
